"SK hynix Could Reach 2.8 Million Won; Why Securities Firms Are Confident That the Main Chapter of AI Has Not Even Begun Yet [Click eStock]"

KB Securities Raises Target Price from 2 Million to 2.8 Million Won
Memory Demand Expected to Outstrip Supply at Least Through Next Year

"The main chapter of artificial intelligence (AI) has not even begun yet."

There are forecasts in the securities industry that the stock price of SK hynix, which is reaching record highs, could rise to 2.8 million won. Observers expect that the market will effectively enter an era of 'zero memory supply,' with demand for memory expected to outstrip supply at least through next year.

Yonhap News

According to KB Securities on May 13, the target price for SK hynix was raised from 2 million won to 2.8 million won. This marks the seventh target price increase so far this year. The target price was first raised to 950,000 won on January 14, then to 1.2 million won (January 28), 1.4 million won (February 2), 1.7 million won (March 13), 1.9 million won (April 10), 2 million won (April 24), and finally to 2.8 million won (May 12). As of the previous day's closing, SK hynix shares stood at 1,835,000 won.

KB Securities calculated the new target price of 2.8 million won by applying a 12-month forward price-to-earnings ratio (PER) of 7.2 times. Kim Dongwon, Head of Research at KB Securities, explained, "The speed at which earnings forecasts are being revised upward is outpacing the rate of share price growth. Reflecting projected memory price increases for 2026, we have revised our operating profit estimates for 2026 and 2027 to 270 trillion won and 418 trillion won, respectively."

Kim added, "Considering the demand outlook from client companies for 2027, memory supply next year will be even tighter than this year. The pace of memory price increases and earnings improvement is expected to continue outpacing share price growth for the time being." He explained that since new memory production lines are scheduled to begin full-scale operations only after 2027, demand for memory will exceed supply at least through next year.

He also said, "The upward trend in memory prices and the surge in demand for server DRAM and enterprise SSDs, driven by expanded AI infrastructure investment, are likely to continue for an extended period beyond 2027. This is because both agentic AI—which can make decisions and take actions independently—and on-device AI markets are only at the very early stage, while the physical AI market, such as humanoid robots and autonomous driving, has yet to begin."

He went on to emphasize, "The main chapter of AI has not yet started. With SK hynix currently trading at a 12-month forward PER of 4.8 times, it is time to focus on the company's upside potential." SK hynix's operating profit for the second quarter is expected to surge sevenfold from a year earlier to 67 trillion won, raising expectations for an earnings surprise.

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