SK Hynix shares fall 20% from highs on Nvidia report and Samsung plan, not Apple

SK Hynix shares fell about 20% from their yearly high, driven by risk aversion ahead of Nvidia's August 26 earnings report and disappointment over Samsung's shareholder return plan, not primarily by Apple's reported interest in Chinese DRAM from ChangXin Memory Technologies. Apple has reportedly tested CXMT's DRAM for potential device use, seeking additional supply and lower costs, but CXMT priced its chips at parity with or above Samsung and SK Hynix, offering no immediate price advantage. This development could strengthen established suppliers' pricing power if CXMT cannot undercut them. Analysts remain bullish on SK Hynix, trading at roughly 6.5 times forward earnings with a consensus strong buy and an average price target of about $245, implying 70% upside. The main risk is Apple qualifying CXMT for significant volumes, gradually eroding SK Hynix's market share and pricing power.