SK Hynix’s Record Profits Clash With $19.6 Trillion Foreign Selling Spree

A curious tension has gripped SK Hynix. The South Korean memory chip giant just posted the strongest quarterly results in its history, yet foreign investors have been bailing out at a record pace. Between May 7 and 22, international funds sold nearly 19.6 trillion won worth of SK Hynix shares, part of a broader exodus that also hit rival Samsung Electronics with outflows of 18.9 trillion won. Together, those two tech heavyweights accounted for over 83% of all net foreign selling on the KOSPI during that period.

The company’s first-quarter numbers explain why such profit-taking might be tempting. Revenue hit 52.58 trillion won in just three months, while operating profit surged 405% to 37.61 trillion won — crushing even the most bullish analyst estimates. Net income came in at roughly 40 trillion won, and the operating margin reached a stunning 72%. The entire 2026 production run of High Bandwidth Memory (HBM) has already been sold out, underpinning what the market now calls a memory supercycle.

Analysts see plenty of room left to run. Shinhan Securities more than doubled its price target from 1.9 million won to 3.8 million won, betting that tight supply for HBM, DRAM, and NAND will persist through at least 2027. The brokerage models operating profit of 26.69 trillion won for 2026 and over 40 trillion won next year. Nomura has set a target of 4 million won, while Citi sees 3.1 million won. Despite the stock’s meteoric ascent, the forward EV/EBITDA multiple sits at just 4.1 — below the semiconductor sector average.

Should investors sell immediately? Or is it worth buying SK Hynix?

The selling wave has so far failed to dent share price momentum. SK Hynix stock closed Friday at 1,941,000 won, good for a weekly gain of 6.71% and a year‑to‑date advance of nearly 187%. The 11% single‑session surge on Thursday brought the shares within striking distance of the record high set in mid‑May. The Relative Strength Index currently stands just below 69, indicating strong upward momentum without tipping into overbought territory.

Technical resistance now lies around 1.95 million won. A clean break above that level would open the path to the 52‑week peak of 1,976,000 won. Supporting the bull case, Meritz Securities notes that SK Hynix’s Global Depositary Receipts on the Frankfurt exchange have traded at an average premium of 2.3% over the local shares over the past month — a signal that international appetite remains robust. Market observers view the recent foreign selling primarily as short‑term portfolio rebalancing after the dramatic rally, not a fundamental shift in sentiment.

On the operational front, SK Hynix is gearing up for the next phase. Pilot production at the new factory in Chungju begins this month, with the first clean room dedicated to future HBM manufacturing from late May. Management plans to deliver initial samples of the next‑generation HBM4E chip in the second half of 2026. Meanwhile, analysts expect HBM exports to reach $7.5 billion in the current quarter, keeping the pressure on the company to expand capacity — and keeping the 2 million won mark firmly in sight once the current profit‑taking cycle runs its course.