KB Securities on the 20th raised its target price for SK hynix, saying the DRAM market will shift to a supplier advantage through 2027 and memory demand is entering a boom cycle. It kept its investment opinion at Buy and set the target price at 8.7 million won, up 19% from the previous level. SK hynix's closing price the previous day was 562,000 won.
KB Securities cited as reasons for the target price hike: ▲ the DRAM market turning to a supplier advantage through 2027, boosting SK hynix's pricing power for high-bandwidth memory (HBM) and commodity DRAM ▲ memory demand entering a boom cycle for the first time in 30 years since the spread of the internet in 1995, raising expectations that it will directly benefit from future memory price increases.
Kim Dong-Won, head of research at KB Securities, said, "In particular, with a short-term increase in memory supply difficult in 2026–2027 and the Yongin semiconductor cluster scheduled to begin operations in the first half of 2028, memory supply shortages will deepen over the next two years," adding, "Through 2027, SK hynix is expected to achieve a high operating profit growth rate."
KB Securities analyzed that SK hynix's operating profit growth rate in 2027 will increase 84% from this year's forecast and 89% from next year's forecast.
KB Securities expects the DRAM supply-demand imbalance to persist for at least two years and projected SK hynix's fourth-quarter results at 2.81 trillion won in revenue and 1.51 trillion won in operating profit. This would set a record high and exceed the market consensus (average forecast).
Kim said of SK hynix, "It is the biggest beneficiary of the memory boom arriving for the first time in 30 years since the internet expansion," and "even if new entrants appear next year, it is expected to maintain a monopolistic supply position with a 60%–65% share of the HBM market."
At the same time, next year's results were estimated at 81 trillion won in operating profit and 70 trillion won in net profit.
Kim said, "SK hynix is effectively without a rival, as it continues a monopolistic and oligopolistic supply position across all AI memory areas, including HBM, the heart of AI semiconductors, high-capacity server DRAM, and eSSD."
It was also estimated that SK hynix's share price could reach 1.15 million won, with a market capitalization of up to 840 trillion won. Kim said, "Assuming the memory boom continues for a long period even after 2028 and applying Micron's valuation, SK hynix's market capitalization would reach 840 trillion won," adding, "There is ample upside potential ahead."