A000660 Strong AI Memory Margins Will Drive Upside Over The Coming Years

Analysts have raised their price target on SK hynix substantially, from ₩419,050 to ₩900,000, citing sharply higher expectations for revenue growth and profit margins, despite a slightly increased discount rate and marginally lower assumed future P E multiple.

What's in the News

• Unveiled its AIN (AI NAND) Family strategy at the 2025 OCP Global Summit, targeting rapidly growing AI inference workloads with NAND solutions optimized separately for performance, bandwidth, and density (Key Developments).
• Announced AIN P, a performance focused NAND solution designed to reduce bottlenecks between storage and AI operations, with samples planned by the end of 2026 (Key Developments).
• Highlighted AIN B, a bandwidth oriented solution leveraging HBF technology that vertically stacks NAND, aiming to close memory capacity gaps as AI inference and large language models scale (Key Developments).
• Co hosted HBF Night with Sandisk to promote standardization and ecosystem collaboration around High Bandwidth Flash, bringing together industry architects and engineers during the OCP Global Summit (Key Developments).
• Entered a long term MOU with Qnity, DuPont Electronics business, to secure advanced CMP polishing pads for next generation semiconductor manufacturing and high bandwidth memory production (Key Developments).

Valuation Changes

• The consensus analyst price target has risen significantly, from approximately ₩419,050 to ₩900,000, reflecting a much higher assessed fair value for SK hynix shares.
• The discount rate has increased slightly, from about 10.72 percent to 10.93 percent, implying a modestly higher required return or perceived risk.
• Revenue growth expectations have risen meaningfully, from around 35.19 percent to 50.13 percent, signaling stronger anticipated top line expansion.
• Net profit margin assumptions have increased substantially, from roughly 29.04 percent to 42.30 percent, indicating expectations of improved profitability.
• The future P/E has edged down marginally, from about 7.12x to 7.08x, suggesting only a slight reduction in the valuation multiple applied to future earnings.