[Click e-Stock] "Entering a Memory Boom, SK Hynix Target Price Raised to 500,000 Won"

On September 30, Shinhan Investment & Securities raised its target price for SK Hynix to 500,000 won, citing heightened expectations for growth in the memory sector.

Kim Hyungtae, a researcher at Shinhan Investment & Securities, explained the reason for the target price increase, stating, "With the surge in demand for artificial intelligence (AI), inventories of DRAM and NAND suppliers improved rapidly in the first quarter, and a general upward trend in memory prices has been confirmed due to supply constraints."

SK Hynix's third-quarter results are expected to show sales of 24.5 trillion won, up 10.4% year-on-year, and operating profit is estimated to reach 11.3 trillion won, surpassing market expectations. The shipment growth rates for DRAM and NAND are projected to exceed previous estimates, at 7% and 2% respectively.

Kim noted, "We observed a trend of price increases among NAND distributors at the beginning of the third quarter, and even considering delayed price hikes by suppliers, a stable upward trend in average selling price (ASP) is expected from the fourth quarter." He added, "If the planned capital expenditure (CapEx) is executed as scheduled and a conservative supply stance is maintained during the transition to advanced nodes, the pace of price increases could accelerate beyond current expectations."

Kim also stated, "We expect the company to maintain its pricing policy, taking cost increases into account, and to continue securing annual HBM contracts with high demand visibility." He explained, "With the simultaneous growth of DRAM and NAND, we forecast that operating profit will surpass 51 trillion won in 2026."

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