Expectations surrounding SK hynix are mounting, with multiple securities firms raising their target prices amid signals of record-breaking earnings forecast. The company's advantageous position in the high-bandwidth memory (HBM) market is fueling optimism about improved performance, leading some analysts to project SK hynix’s best-ever financial results, with target prices reaching up to 370,000 won.
On July 1, Sangsangin Investment & Securities revised its target price for SK hynix from 300,000 won to 370,000 won. Researcher Jung Ming-kyu explained, "Despite external factors such as tariffs, the memory industry has shifted focus to HBM with selective capital investments and technological transitions, resulting in a larger-than-expected increase in memory prices." Based on this outlook, Sangsangin Investment & Securities has also raised its forecasts for SK hynix's revenue to 85.8 trillion won and operating profit to 37.6 trillion won for this year. The firm projects HBM sales will reach 32.4 trillion won annually.
Similarly, BNK Securities increased its target price from 270,000 won to 350,000 won. Analyst Lee Min-hee noted, “While competitors Micron and Samsung are experiencing setbacks in HBM3E certification and production, SK hynix is expected to nearly double its HBM sales volume this year, significantly expanding its market share.” It is particularly noted that SK hynix has achieved a stable yield rate in the 12-layer HBM3E products, in the mid-to-high 60% range.
Looking ahead, SK hynix is expected to maintain its dominance in the next-generation memory market. Lee predicted, “SK hynix will have exclusive supply of HBM4 starting late this year, and by next year, it will control over 70% of NVIDIA’s HBM4 supply chain.”
However, the analyst cautioned, “The production costs for HBM4 are expected to increase due to outsourced production of base dies and higher I/O, which could cause profit margins to decline by 15-20 percentage points compared to previous levels." Despite this, he explained, “HBM4 commands a price premium of more than 30% over HBM3E on average, which will lead to a sharp rise in overall sales and operating profits.” BNK Securities forecasts SK hynix’s HBM sales to increase by 69% and operating profit by 42% next year.
