KB Securities on Friday raised its target price for SK hynix to 1.9 million won ($1,400) per share from 1.7 million won, citing accelerating earnings growth driven by AI-led memory demand and rising chip prices.
The brokerage maintained a “buy” rating, noting that operating profit is likely to enter a faster growth phase after the first quarter, as supply shortages support structural price increases in DRAM and NAND.
KB Securities estimates SK hynix’s operating profit will surge fivefold on-year to 251 trillion won this year, with further growth to 358 trillion won in 2027, potentially lifting the company into the top tier of global earners.
By segment, DRAM operating profit is projected to jump fivefold to 203 trillion won, while NAND profit could rise 23-fold to 47 trillion won, reflecting sharp price gains. DRAM prices are expected to increase 170 percent this year, with NAND up 190 percent.
First-quarter earnings are also expected to exceed market expectations, with operating profit forecast at 40.1 trillion won, up 438.7 percent on-year.
KB Securities said memory chips are increasingly viewed as essential infrastructure for big tech firms amid expanding AI investment, with the industry evolving toward a foundry-like model based on long-term supply contracts.
Despite the strong outlook, SK hynix remains undervalued, trading at a forward price-to-earnings ratio of around 3.1, suggesting significant room for rerating.
jylee@heraldcorp.com
