Chey Tae-won: 'SK Hynix stock will trend upwards over time'

SK Group Chairman Chey Tae-won has urged investors to hold onto SK Hynix stock for the long term, despite a significant drop from its recent peak. The semiconductor giant's share price has fallen by more than 30% from its high of 2.73 million won to around 1.84 million won.

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Memory is always needed, so if you give it time, [SK Hynix stock] will go upwards.

"Memory is always needed, so if you give it time, [SK Hynix stock] will go upwards," Chey stated at the 49th Jeju Forum of the Korea Chamber of Commerce and Industry. He advised against frequent buying and selling, suggesting that holding the stock is beneficial for preserving wealth.

Chey explained that the demand for memory chips is expected to grow exponentially as artificial intelligence (AI) technology develops. He likened AI's current stage to that of a "4-year-old child" that will require substantial memory resources to mature into an adult technology. This projected surge in demand is a key factor supporting his optimistic long-term outlook for SK Hynix.

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I don't know what the stock price will be next month, but not buying and selling and just holding onto it is a good way to preserve your assets.

The stock's volatility has been notable this year. Starting at 670,000 won in early January, it surged past 1 million won by late February and exceeded 2 million won in May, reaching a record high of 2.73 million won in intraday trading in June. However, a subsequent decline, exacerbated by a slump in US semiconductor stocks, brought the price down significantly. This sharp decline has intensified concerns among investors, particularly those in leveraged ETFs tied to the performance of Samsung Electronics and SK Hynix.

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AI is still a 4-year-old child, but memory will inevitably be used for it to grow into an adult. That demand is bound to increase exponentially.