SK Hynix Shares Rise 4% After CEO Warns 2027 Will Be 'Worst Year in Industry History'

NEW YORK—Shares of SK Hynix climbed an additional 4.2 percent in after-hours trading Thursday after Chief Executive Kwak Noh-Jung told Reuters that next year would be "the worst year in the industry's history from the supply perspective," a statement analysts described as the most unambiguously bullish signal of the trading session.

The remarks came on the same afternoon the Korean memory chipmaker raised $26.5 billion in its Nasdaq debut—the largest U.S. IPO ever by a foreign company—pushing the company's market capitalization above $1 trillion. Kwak delivered the forecast to reporters on the exchange floor, minutes after the closing bell.

"Demand will exceed supply capacity beyond 2030," Kwak said.

By 6:15 p.m. Eastern, the comment had been cited in eleven analyst upgrades. A note from Meridian Equity Research, titled "Structural Scarcity = Structural Buy," argued that any company whose product exists in permanent shortage "exhibits the ideal pricing-power characteristics" and initiated coverage with a $310 price target.

"We view the CEO's forecast of catastrophic undersupply as a strong signal of continued earnings upside," the note read. "We would expect shares to react positively to any further deterioration in the supply outlook."

The note added that analysts planned to revise their target higher should Kwak issue additional warnings.

Kwak did not respond to a request for comment. A company spokesperson confirmed SK Hynix "remains committed to being unable to make enough."