"Is It Still Not Too Late?"... SK hynix Hits All-Time High, Target Price Is [Click eStock]

Mirae Asset Securities has maintained its 'target price of 2 million won' for SK hynix, which recently set a new all-time high, stating that the outlook for its end-market remains positive. The company cited continued strong demand, as evidenced by ongoing expansion in capital expenditures (CAPEX) among global big tech companies.

Yonhap News Agency

According to Mirae Asset Securities on May 5, analyst Kim Younggeon stated in a report released the previous day, "Although we slightly lowered our previous estimate for the annual average selling price (ASP) in 2027, the impact on the expected 12-month basis book value per share (BPS) is limited, so the target price remains unchanged." The investment recommendation also remains 'Buy'.

First, analyst Kim noted, "All big tech companies are sharing concrete figures showing the rapid growth of their artificial intelligence (AI) businesses," adding, "Given the large order backlogs, there appears to be a low probability that CAPEX investments will shift to a sharp decline."

Following last week's earnings announcements from North American big tech firms, the total CAPEX for global hyperscalers in 2026 is estimated at USD 806 billion, up 73% year-on-year. CAPEX investments by these companies are also expected to increase further in 2027.

In addition, demand for high-bandwidth memory (HBM) for big tech ASICs was assessed positively. Analyst Kim pointed out, "There is also noticeable strength in inference CPUs (central processing units)," and noted, "CPUs are accompanied by demand for conventional memory." He further commented, "The trend of long-term supply agreements in the industry is also encouraging. Competitor SanDisk has announced signing long-term supply contracts for up to five years," and projected, "This will likely become the norm across the industry."

Mirae Asset Securities' annual operating profit forecasts for this year and next year are 27.9 trillion won and 39.8 trillion won, respectively, representing increases of 491% and 43% compared to the previous year.

Meanwhile, on May 4, SK hynix closed the regular session on the domestic stock market at 1,447,000 won, up 12.52% from the previous day. The company broke through the 1.45 million won mark during the trading session, setting a new all-time high, and also recorded a record closing price. Its market capitalization surpassed 1,000 trillion won for the first time as well.

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