SK hynix Inc. (NASDAQ: SKHY) rose more than 1% in Friday premarket trading following reports that its Solidigm subsidiary is considering a US NAND flash memory factory.
Upstate New York has emerged as a leading candidate for the project, Reuters reported Friday, citing three people familiar with the matter.
The potential investment comes as Washington pushes chipmakers to expand US manufacturing. At the same time, booming artificial intelligence infrastructure spending has tightened global memory supplies.
Nasdaq futures gained 0.38%, while S&P 500 futures slipped 0.07%.
Solidigm Weighs New York NAND Plant
The potential Solidigm factory would be separate from SK hynix's discussions with Intel Corp. (NASDAQ: INTC) to produce memory chips at Intel's Ohio facility.
However, no agreement has been reached, and key details remain under discussion, Reuters reported.
SK hynix said Solidigm is reviewing options to strengthen its competitiveness but has not confirmed any specific plans.
A US factory could also reduce Solidigm's reliance on its only NAND production facility in Dalian, China. In addition, domestic production could limit exposure to potential US tariffs and restrictions on exports of chipmaking equipment to China.
Analyst Outlook
The stock carries a consensus Buy rating and an average price forecast of $247.67.
JPMorgan initiated coverage with an Overweight rating and a $245 price forecast on Sept. 10. Needham maintained a Buy rating and raised its forecast to $220 on Aug. 24. Wolfe Research initiated coverage with an Outperform rating and a $200 forecast on Aug. 4.
ETF Exposure
SK hynix accounts for about 5.05% of the NestYield Dynamic Income ETF (NYSE: EGGY), 4.96% of the NestYield Visionary ETF (NASDAQ: EGGQ) and 4.77% of the NestYield Total Return Guard ETF (NYSE: EGGS).
Those weightings mean fund flows can contribute to buying or selling activity in SK hynix shares.
SKHY Price Action
SK hynix shares rose 1.44% to $185.62 in Friday premarket trading, according to market data.
