SK Hynix Stock Soars on S&P Upgrade to A-

SK Hynix, a leading memory chip manufacturer, has received a boost in its stock price following an upgrade from S&P Global Ratings. The company's credit rating was raised from BBB+ to A-, with a positive outlook for further gains. This upgrade comes after SK Hynix announced its capital return plan, which has already pushed the stock up 11.3% over the past three weeks.

The company's strong performance in the second quarter supports this optimism. Revenue reached 79.32 trillion won, a 257% year-over-year increase. This is driven by high demand for HBM chips and enterprise SSDs, which contributed to a 76% operating margin.

Analysts are now turning bullish on SK Hynix stock. Wolfe Research and RBC Capital Markets set price targets of $200-$240 per ADR, citing the pricing tailwinds of HBM4. Stifel also started coverage with a Buy rating and a $240 target, while William Blair projects free cash flow could more than double by 2028.