Key insights
- The article suggests SK Hynix is undervalued compared to peers like Micron and TSMC, citing a significant valuation gap based on Q1 2026 financials. It highlights SK Hynix's higher quarterly profit relative to its market cap. The potential US listing and re-rating to peer multiples could imply substantial upside, potentially influencing investor sentiment towards the semiconductor sector and related US-listed companies.
SK hynix is listing on the US markets in the coming months.
Q1 2026 financials highlight a striking valuation gap among SK and other semiconductor leaders:
SK hynix: ~$37B revenue, ~$28.5B net profit, ~$1.1T market cap
Micron: ~$24B revenue, ~$13.8B net profit, ~$0.9–1.0T market cap
TSMC: ~$35B revenue, ~$18.5B net profit, ~$1.9T market cap
Looking at market cap relative to quarterly profit: - SK hynix trades at roughly 39x quarterly profit - Micron trades at roughly 67x quarterly profit - TSMC trades at roughly 103x quarterly profit
Despite generating more quarterly profit than either Micron or TSMC, SK hynix trades at a significantly lower valuation multiple.
If SK hynix were valued at Micron’s multiple, its market cap would be closer to $1.9 trillion.
If SK hynix were valued at TSMC’s multiple, its market cap would approach $2.9 trillion.
*yes this is AI written, but never the less still valid.