What Rosenblatt Securities Thinks the Market Misses on SK Hynix (SKHY) Farooq Fri, November 13, 2026 at 4:32 PM EST 3 min read SKHY -5.31% ^VIX +3.21% ^IXIC -0.91% SKHY -5.31% We just published a list of the 10 Multibagger Stocks to Buy According to Wall Street and SK Hynix (NASDAQ:SKHY) ranked 10th on this list.
Wall Street's AI trade just had one of its worst weeks in years. Politics and inflation hit it at the same time. The Nasdaq Composite posted its deepest one-day drop since April 2025 last week, after Democrats swept the midterm elections and investors began weighing tougher scrutiny of AI and limits on data center construction. The Cboe Volatility Index climbed to a seven-month high the same day.
Stocks first cheered the election. They closed sharply higher the day after the vote because the result cleared up political uncertainty. Then chipmakers and data center operators fell, even as the biggest, cash-rich AI spenders rose. A slower buildout eases cash demands on the companies doing the spending, but it squeezes the operators and suppliers whose growth depends on fast construction.
Scott Chronert, head of US equity strategy at Citi Research, said a change in the pace of the data center buildout changes the basic path for many of those suppliers. Our list of oversold AI stocks where Wall Street analysts see 50% upside or more covers more of the group.
Inflation added a second worry. The Labor Department said consumer prices rose 0.4% in October, a third straight gain of 0.4% or more. Economists polled by Reuters had expected 0.3%. Markets now fully price in a Federal Reserve rate increase of at least 25 basis points in December, up from 84% a day earlier, according to CME FedWatch.
Fed Governor Christopher Waller said the central bank should raise rates in December even if inflation had cooled. He said a half-point move should be considered if the picture worsened. Jason Ware, chief investment officer at Albion Financial Group, said investors began to wonder whether the Fed worried more about inflation than they did, and sold some stocks.
The rout wiped out trillions of dollars in market value and clouded the outlook for a global economy the AI boom has been supporting. Readers following the chip side of the trade can find more names in our list of the best semiconductor stocks to buy for the next decade. Ahead of the Fed's December meeting, traders expect about two more quarter-point increases in total this cycle, according to LSEG data.
SK Hynix made it to our list because it has an average upside potential of 89%. Rosenblatt Securities analyst Kevin Cassidy raised his price target on SK Hynix to $400 from $320 on October 28 and kept a Buy rating, the day the chipmaker reported a record quarter. He thinks the market is misreading memory. Long-term contracts already cover more than half of 2027 and 2028 capacity, and management expects much higher revenue and profit next year.
Revenue rose 328% from a year earlier, and operating margin hit 80%. The South Korean company makes the DRAM and NAND chips that store data in servers, plus the high bandwidth memory that sits next to AI processors. Management says demand will outrun supply through 2030, and HBM4, its newest high bandwidth chip, becomes its main product in the fourth quarter.
Whether margins that high can last is something we explored for SK Hynix.
While we acknowledge the risk and potential of SKHY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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