SK hynix's stock surged 5.09% during intraday trading on Friday, marking a significant rebound for the memory chipmaker following recent volatility.

The sharp upward move was fueled by a bullish analyst report from Meritz Securities, which argued the market has fundamentally misjudged the semiconductor sector's prospects. The report highlighted that SK hynix is in a state of "extreme undervaluation" with a forward price-to-earnings ratio for 2027 of approximately 3.5x. Analyst Kim Sunwoo contended that investors are mistaking fragmented information for a complete picture and that a deepening supply shortage for DRAM memory is a "fairly certain scenario," with the demand fulfillment rate projected to drop into the 60% range in 2027.

Concurrently, robust investor demand for exposure to the stock provided additional support. News emerged that CSOP Asset Management's 2x leveraged product on SK hynix has grown to HKD 130 billion in assets under management within eight months of its launch, becoming the world's largest single-stock leveraged product by size. Furthermore, the substantial premium of SK hynix's U.S.-listed American Depositary Receipts over its Korean shares has fueled significant capital inflows into related Korean equity ETFs as investors seek efficient access to the underlying stock. Positive commentary from SK Group Chairman Chey Tae-won about exponential memory chip demand growth also contributed to the optimistic sentiment, while the closure of the Korean market for a holiday allowed U.S. investors to engage in bargain hunting through ADRs without immediate concern for underlying share movements.