KB Securities headquarters in Yeouido / Courtesy of KB Securities
KB Securities has raised its target price for SK hynix, citing stronger earnings growth prospects driven by rising memory prices and increasing demand from the AI sector.
In a report released on April 10, the brokerage lifted its target price for SK hynix from 1.7 million won to 1.9 million won, an increase of 11.8%, while maintaining a “buy” rating. Analyst Kim Dong-won pointed to a sharp rebound in memory prices as a key factor behind the upward revision.
The report projects that DRAM and NAND prices will rise by 170% and 190% year-over-year, respectively. Reflecting this outlook, KB Securities significantly increased its operating profit forecasts for SK hynix to 25.1 trillion won for this year and 35.8 trillion won for next year. The firm expects the pace of earnings improvement to accelerate from the first quarter onward.
Growing investments in AI infrastructure are also expected to support demand, as major tech companies increasingly view memory semiconductors not as a cost component but as a strategic asset. This shift is seen as a positive driver for sustained industry growth.
The report further noted that the transition from traditional search-based information retrieval to AI-driven systems could underpin a structural uptrend in memory prices over the mid- to long term.
Kim also highlighted potential structural changes in the memory industry, including the expansion of long-term supply agreements. Such developments could lead to a “foundry-like” model characterized by pre-orders followed by production, which may serve as a key catalyst for revaluation of industry players.
Based on these trends, SK hynix is projected to rise from fourth to third place globally in operating profit rankings by 2027, reinforcing its position as a leading player in the semiconductor industry.
Jung So-yeon
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