The article compares Apple (AAPL) and SK Hynix (SKHY). Apple sells consumer hardware such as the iPhone and Mac alongside a high-margin Services segment, while SK Hynix makes DRAM and NAND memory chips for data centers and AI processing in a cyclical market. On a trailing-12-month basis through Q2 2026, Apple reported revenue of $466 billion, up about 14%, net income of roughly $129 billion, free cash flow of nearly $137 billion, and a debt-to-equity ratio near 0.8x. SK Hynix reported TTM revenue of about $129 billion, more than double the prior-year period, net income of nearly $109 billion, free cash flow of about $60 billion, and a debt-to-equity ratio around 0.1x. The article says SK Hynix looks much cheaper but carries greater cyclical risk, and the author says he would rather buy Apple heading into 2027, noting Apple trades at 35 times forward earnings estimates.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AppleSK Hynixsemiconductorsvaluation
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AAPL
• NeutralApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.0T |
| Close on 10/20/2026 | 339.73 |
| Change that session | -0.94% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Should You Be Worried About Apple Stock?
Apple stock returned 35.1% over the past year versus 17.1% for the S&P 500, but the article says the main pressure now is cost. Management said memory chip prices have risen sharply, calling it a '100-year flood,' and expects higher memory costs in the September quarter. Gross margin still reached 50.1% in fiscal Q3 2026, up from 46.5% a year earlier, though guidance for the September quarter is 47% to 48%, including about one point from tariff refunds. Demand is strong: products brought in $78.7 billion of the $109.4 billion in revenue, and iPhone and Mac sales ran ahead of plan. Apple trades at 38.6 times earnings versus 23.0 for the S&P 500, so the article calls gross margin the key figure to watch in the next report.
- Apple vs. ASML: Which Tech Stock Is a Better Buy in 2026?
Apple reported fiscal 2025 revenue of nearly $416.2 billion, up about 6.4%, and net income near $112 billion, a 26.9% net margin. ASML reported revenue of nearly $36.8 billion, up 15.6%, with net income of $10.8 billion and a margin of roughly 29.4%. Apple’s free cash flow reached about $98.8 billion, while ASML produced about $12.5 billion. Apple faces antitrust litigation, including a 2024 DOJ lawsuit, and reliance on single-source suppliers in Asia, while ASML’s cyclical industry and export restrictions pose risks. The article says Apple appears more attractive on its sales multiple, though both trade at similar premiums to future earnings, and the author, a longtime Apple shareholder, says he finds ASML’s industry position extremely appealing.
- SK Hynix Sinks 4% as Seoul Selloff Revives AI Spending Fears; SanDisk Drops 3%, Micron Eases
Memory chip stocks fell as a sharp selloff in Seoul, where South Korea's Kospi led Asian markets lower, revived concerns about how long the AI spending boom can last. SK Hynix (SKHY) was down 4% at $137.03, SanDisk (SNDK) fell 3% to $1,336.86, and Micron (MU) eased 2% to $886.64. The Roundhill Memory ETF (DRAM) dropped 3% to $46.75, a steeper decline than the 0.5% fall in the Invesco QQQ Trust (QQQ), pointing to a memory-led selloff. Separately, a union at Micron's Taoyuan operation in Taiwan plans a strike later this week over employee bonuses and profit sharing, and SK Hynix's upcoming earnings report could show whether AI memory demand holds up.
- SK hynix launches W2tr financing program to bolster chip suppliers
SK hynix has launched a 2 trillion won ($1.5 billion) financing program with major commercial banks and a state-run trade insurer to help domestic chip suppliers secure cheaper funding. Under the deal, SK hynix and the participating banks will contribute 100 billion won, while the Korea Trade Insurance Corporation will provide guarantees worth up to 20 times that amount, supporting as much as 2 trillion won in financing. The initiative targets small and midsized suppliers of semiconductor materials, parts and equipment, who face high borrowing costs. The company is also building the Trinity Fab, an 870 billion won testing facility at the Yongin cluster where suppliers can validate products under real manufacturing conditions.
- If I Could Only Own 1 Artificial Intelligence (AI) Memory Stock for the Next 5 Years, It Wouldn't Be Micron.
The author says that if he could own only one AI memory stock for the next five years, he would choose SK Hynix (SKHY) over Micron (MU). According to Counterpoint Research, SK Hynix accounted for 50% of global HBM revenue in the second quarter, nearly as much as Samsung and Micron combined, thanks to early investment in advanced memory packaging and manufacturing. The company began mass shipments of HBM4 in the second quarter and is developing HBM4E. Demand comes not only from Nvidia but also from AI hyperscalers such as Alphabet, Amazon, Microsoft, Meta, OpenAI and Anthropic, which are developing custom chips. The author notes that SK Hynix's valuation remains fairly modest on a forward P/E basis relative to its earnings growth.
- Samsung , SK hynix sell - off excessive as memory outlook stays strong : analysts
Samsung Electronics and SK hynix shares fell 23.9% and 31.5% over seven consecutive sessions starting Oct. 6, even as earnings forecasts rose on strong AI demand and tightening memory supply. Analysts said the sell-off reflected weak buying support and investor confidence rather than deteriorating fundamentals, calling the decline an excessive correction. SK Securities said next year's forecasts are being revised upward because the memory supply shortage may deepen and high-bandwidth memory prices may rise, while long-term supply agreements could improve earnings sustainability. Both stocks rebounded Friday as the KOSPI snapped its seven-session losing streak. SK hynix is scheduled to report third-quarter earnings on Oct. 28, followed by Samsung Electronics on Oct. 29.
Related markets
Latest news
- On October 22, Russia Officially Delivers Good News to the US
Russian Deputy Prime Minister Alexander Novak said a vessel carrying about 40,000 tons of diesel will depart today, October 22, for the US, though he did not name the port; Putin said further shipments would follow. The shipment is the latest step in a US–Russia energy arrangement announced by Trump on 9/10, which envisaged more than 300,000 tons immediately, 500,000 tons in November and one million tons afterward. The first cargo equals only about 13% of the initial tranche, though Moscow says more cargoes are being prepared. Diesel retail prices in the US have stayed above $6 per gallon since September, pressuring transport and agriculture ahead of the 3/11 midterm elections, and Washington hopes returning Russian supply will cool the market. Ukraine and some Western allies have objected, fearing the deal will give Moscow more energy revenue while fighting continues.
- Cardano Foundation urges EU against expanding MiCA rules to DeFi and staking
The Cardano Foundation has urged the EU not to create standalone rules for DeFi and staking, arguing that existing financial laws should apply based on the functions and risks of an activity rather than the technology used. In its 19-page submission to the European Commission dated Sept. 30, it distinguishes direct participation in decentralized networks from intermediary services, particularly custody or control of users' assets. It says Cardano users can delegate ADA to help secure the network without surrendering custody or locking tokens. The foundation also warns that overlapping MiCA and existing financial rules could create uncertainty for crypto businesses. In an Oct. 20 letter, it joined five other blockchain organizations urging the SEC to recognize digital commodities as non-securities.
- Anthropic's leaked IPO filing raises more questions than answers
Yahoo Finance's Market Hang panel breaks down the reportedly leaked S-1 filing of Anthropic (ANTH.PVT) ahead of a potential IPO, focusing on its revenue, costs and business model. According to the discussion, the company spent $9 billion on compute to generate $16 billion in revenue, 20% of its revenue comes from two customers, and it has $450 billion in compute commitments, about half non-cancelable. Roughly $750 billion more in deals is still under negotiation. Panelists question whether Anthropic can become profitable and generate cash flow, comparing it to WeWork's above-market leases, and say the $2 trillion target valuation mostly reflects market sentiment.
- Wendy turns its attention to value
Wendy's is promoting a limited-time Dave's Single combo for $7.99 and bringing back yellow packaging abandoned in 2012, as part of an effort to win back value-conscious customers. CEO Bob Wright admitted that the chain's quality differentiation has eroded, its value proposition has weakened, and its Biggie value platforms have become too complex. He said Wendy's will apply a tiered value approach across its core menu, everyday value and promotions, modeled on what worked at Potbelly. Same-store sales have declined for six straight quarters, traffic fell 12.5% last quarter, and the chain closed 245 locations in the first half of the year. Wendy's has promised more changes, which Wright is expected to detail with third-quarter earnings next month.
- Fact check : When it comes to Trump economy , these numbers matter
The AP fact check finds that although President Trump says the economy is booming ahead of the midterm elections, voters remain concerned about inflation, gasoline prices tied to the Iran war, and high borrowing costs. CPI inflation stood at 3.7% over the past 12 months, after slowing until April 2025 and then climbing again following new tariffs. GDP has grown a little over 2% annually and unemployment is 4.2%, but job gains average almost 39,000 per month, versus 121,000 in the year before Trump returned to the White House. The 10-year Treasury yield is above 5%, its highest since 2002, while the S&P 500 is up about 12% this year. Wealth of the top 0.1% of households rose $5.5 trillion in 18 months, while the bottom 50% gained only $380 billion.
- Fact check : When it comes to Trump economy , these numbers matter
The AP fact check finds that although President Trump says the economy is booming ahead of the midterm elections, voters remain concerned about inflation, gasoline prices tied to the Iran war, and high borrowing costs. CPI inflation stood at 3.7% over the past 12 months, after slowing until April 2025 and then climbing again following new tariffs. GDP has grown a little over 2% annually and unemployment is 4.2%, but job gains average almost 39,000 per month, versus 121,000 in the year before Trump returned to the White House. The 10-year Treasury yield is above 5%, its highest since 2002, while the S&P 500 is up about 12% this year. Wealth of the top 0.1% of households rose $5.5 trillion in 18 months, while the bottom 50% gained only $380 billion.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.