Investing.com -- UBS initiated coverage of SK Hynix's ADR with a Buy rating and a $204 price target in a note to clients on Thursday, as the firm argues the market is underpricing structurally higher memory profitability. UBS said the memory industry has "drastically changed," with agentic AI set to boost memory bit demand into 2027. At current levels, UBS said, shares do not fully reflect higher profitability, stronger free cash flow generation and enhanced shareholder returns. DRAM average selling prices rose 30% quarter over quarter, held back by a higher mobile mix and HBM4 shipments starting only late in the period. Related articlesUBS sees upside in SK Hynix stock on high memory profitabilityAI wizkid Leopold Aschenbrenner forced to sell entire portfolio after routFerrari CEO says Luce orders "in line with expectations"