[Edaily Reporter Park Jung-Soo ] On the 9th, KB Securities analyzed that SK hynix(000660)is expected to see a revaluation of its shares—along with its Korean common stock—as its global investor base expands following the listing of its American Depositary Receipts (ADRs) (scheduled for July 10). The firm maintained its “Buy” rating and target price of 4.2 million won. The previous day’s closing price was 2.076 million won.
Kim Dong-won, Head of Research at KB Securities, stated, “With the U.S. ADR listing expanding accessibility for global investors, there is a high likelihood that both the U.S. ADRs and the Korean common stock will be revalued simultaneously,” adding, “The semiconductor rally is not over yet, and there is ample room for the stock price to rise.”
KB Securities projected that the memory market will continue to face supply shortages next year. It forecast that the year-over-year growth rates for DRAM and NAND wafer production capacity in 2027 will be limited to 7% and 4%, respectively, while demand growth is expected to reach 17% and 19%, respectively.
Consequently, the firm predicted that memory price growth in the second half of the year would exceed market expectations, and that High-Bandwidth Memory (HBM) prices in 2027 would rise by more than 100% year-over-year, reflecting the profitability gap with standard DRAM.
The firm also assessed that earnings forecasts for this year and next year are highly likely to be revised upward further. KB Securities projected SK hynix’s operating profit at 290 trillion won for 2026 and 469 trillion won for 2027, analyzing that current estimates are also highly likely to be revised upward.
The firm also identified the expansion of global AI investment as a key growth driver. It projected that the scale of global AI investment would increase approximately threefold, from $390 billion in 2025 to $1.1 trillion in 2027. AI agents are expected to triple memory demand, autonomous driving to quintuple it, and robotics to increase it more than tenfold; the share of memory in AI infrastructure investment is also projected to rise from 14% in 2025 to 50% in 2027.
Kim Dong-won, head of the division, stated, “Just as with TSMC, which listed its U.S. ADRs in 1997, there is a high likelihood of a virtuous cycle emerging in which both the underlying shares and ADRs are revalued as the base of global investors expands.” He added, “Given that the current 12-month forward P/E ratio stands at 4.5x, valuation concerns are not significant.”