Nomura Securities recently raised its target price for SK hynix to a notable KRW 2.34 million, suggesting a potential upside of over 90% from its current price.
This isn't just a random guess; it's a conclusion drawn from a powerful trend reshaping the entire semiconductor industry. The core driver is the explosive demand for artificial intelligence, which requires specialized, high-performance memory chips known as HBM (High-Bandwidth Memory). SK hynix established itself as a key supplier in this market, particularly for AI giant Nvidia, creating a classic 'seller's market' where demand far outstrips supply.
This market dynamic has a clear cause-and-effect chain. First, SK hynix's leadership and the general scarcity of HBM allowed the company to secure LTAs (Long-Term Agreements) with major clients. These contracts lock in favorable prices for an extended period, giving the company stable and predictable profits. By late 2025, reports already indicated that SK hynix's 2026 HBM supply was completely sold out, confirming this immense pricing power.
Second, this strength was validated by concrete numbers. SK hynix's first-quarter 2026 financial results were record-breaking, with an operating profit of over KRW 37 trillion and a staggering 72% profit margin. This proved that the high prices weren't just theoretical but were translating into actual, substantial earnings. This strong performance serves as the foundation for Nomura's forecast.
Finally, looking ahead, market research firms like TrendForce are predicting that memory prices will continue to surge in the second quarter of 2026, with DRAM prices potentially rising over 60% and NAND over 70%. Nomura's analysis projects this trend forward, anticipating that SK hynix's operating profit could jump by another 80% in the second quarter alone, reaching KRW 68 trillion. Other factors, like a potential labor strike at competitor Samsung which could tighten supply further, and SK hynix’s plan for a U.S. stock listing (ADR) to attract more investors, also support this positive re-evaluation.
- HBM (High-Bandwidth Memory): A type of high-performance memory chip essential for AI accelerators and supercomputers, capable of transferring data much faster than conventional memory.
- LTA (Long-Term Agreement): A contract between a supplier and a customer for the supply of goods over an extended period, often locking in prices and volumes.
- ADR (American Depositary Receipt): A certificate issued by a U.S. bank representing a specified number of shares in a foreign stock. It allows U.S. investors to buy shares in foreign companies without the complexities of cross-border transactions.