[Click eStock] "SK Hynix, DRAM Supply-Demand Improvement Sooner Than Expected"

Intel Launches Next-Generation Server Platform... Data Center Investments on the Rise
PC Demand Surges... Operating Profit Expected to Increase Despite Low Facility Investment

[Asia Economy Reporter Minwoo Lee] As data center investments resume, demand for DRAM is increasing, and DRAM prices are expected to rise more quickly. It is analyzed that SK Hynix's profitability will improve.

On the 7th, NH Investment & Securities raised SK Hynix's target stock price by 21%, from 140,000 KRW to 170,000 KRW, citing these reasons. The closing price the previous day was 131,000 KRW. The investment opinion was maintained as 'Buy.'

With DRAM prices expected to rise earlier than anticipated starting from the first quarter of this year, performance growth is expected. This is because 'hyperscalers' operating large-scale data centers such as Google, Facebook, and Amazon Web Services (AWS) are resuming data center investments. In particular, the acceleration is expected as shipments of servers equipped with Intel's next-generation server platform 'Whitley' are in full swing.

PC demand is also increasing. Due to the spread of non-face-to-face (untact) lifestyles such as remote work, demand has remained strong, with PC sales last year reaching 286 million units, the highest in the past 10 years. Dohyunwoo, a researcher at NH Investment & Securities, said, "According to the parts industry, the increase in PC sales is expected to accelerate further in the first half of 2021," adding, "Processor diversification from existing Intel processor PCs to AMD, ARM, etc., has stimulated consumer demand, and Apple PC shipments in 2021 are expected to grow by more than 50% compared to the previous year."

Although demand is increasing, the memory supply growth in 2021 is expected to be relatively sluggish. Researcher Doh said, "All three DRAM companies are focusing on profitability management," and "New facility investments in 2021 are expected to be executed at last year's level, so the global DRAM shipment growth this year will be limited to 15% compared to the previous year." Against this backdrop, NH Investment & Securities also raised SK Hynix's operating profit estimate for this year from 10.6 trillion KRW to 12.9 trillion KRW.

This content was produced with the assistance of AI translation services.