Is SK Hynix Stock a Buy on the Dip as Demand Continues to Surge?
SK Hynix stock has been volatile since its U.S. debut.
Overview
South Korean memory maker SK Hynix (NASDAQ: SKHY) reported its first earnings after debuting its ADRs (American depositary receipts) on the Nasdaq Exchange, and as expected, the company saw robust growth. However, its revenue and earnings missed expectations, as some high bandwidth memory (HBM) shipments weren't delivered in time this quarter.
SK Hynix's stock has been extremely volatile since its U.S. debut earlier in July, as memory stocks have been whipsawed between the prospects of huge sustained growth and the fear of past memory cycles that have seen prices collapse and investors left in tears. Let's dip into the company's earnings report to see if the stock is a buy.
Details
In Q2, SK Hynix's revenue surged 257% to 79.32 trillion won ($54.6 billion), although that fell short of the 84 trillion won ($58 billion) average analyst estimate. Increased prices largely drove the growth. The average selling price (ASP) for DRAM jumped 30% quarter over quarter, while NAND (flash) prices soared 50% sequentially.
Source
Originally published at www.fool.com.
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