[Edaily Reporter KIM YOON-JEONG ] Target prices for SK hynix have diverged among securities firms, ranging as widely as 2.45 million won. With estimates ranging from a low of 1.85 million won to a high of 4.30 million won, a stark difference in outlook has emerged. This is due to differing perspectives on the sustainability of artificial intelligence (AI) investments, the memory market conditions, and the impact of the American Depositary Receipt (ADR) listing.

According to the financial investment industry on the 10th, target prices for SK hynix(000660)as of that day ranged from a low of 1.85 million won (BNK Investment & Securities) to a high of 4.3 million won (HANWHA INVESTMENT & SECURITIES). With a difference of as much as 2.45 million won in target prices among securities firms for the same company, views on the AI memory market conditions and corporate value are sharply diverging.
◇BNK: “Concerns Over Slowdown in AI Investment”…Target Price 1.85 Million Won
BNK Investment & Securities offered the most conservative outlook. The firm maintained its “Hold” rating and a target price of 1.85 million won for SK hynix. This figure is lower than the current stock price, reflecting the firm’s emphasis on the possibility that momentum in AI investment is entering a slowdown phase.
Lee Min-hee, an analyst at BNK Investment & Securities, noted, “DRAM for AI servers and enterprise solid-state drives (eSSDs) are still facing supply shortages,” but added, “The competitive infrastructure investments by hyperscalers driving orders are no longer valid.”
She also cited the growing likelihood that global cloud service providers (CSPs), including Meta, will moderate the pace of their AI investments. “The current consensus for capital expenditures (CAPEX) by U.S. CSPs is an 83% increase this year and a 23% increase next year,” Lee said, “Given expectations of rising memory and central processing unit (CPU) prices next year, along with the upgraded specifications of new Agent AI models, it appears that capital expenditures would need to increase by at least 30–40% next year as well. However, the likelihood of a slowdown in the investment pace is actually increasing, creating a disconnect with the current earnings outlook for semiconductor companies,” he analyzed.
He also highlighted the expansion of supply by Chinese memory manufacturers. “Just as Taiwanese companies entered the DRAM market en masse during the dot-com bubble boom, it appears that Chinese companies are now making a full-scale entry into the supply chains of major PC and mobile OEMs, driven by the AI boom,” he said. “Since the profit gap between leading memory competitors has disappeared, the fallout is likely to be severe when the industry enters a downturn,” he predicted.
He further argued, “Cyclical stocks tend to appear undervalued as they approach the peak of the cycle,” explaining, “This is because earnings rise steeply as the cycle progresses.” He continued, “Once demand momentum begins to slow, these stocks become low-P/E stocks,” adding, “The recent sharp drop in stock prices reflects slowing demand, and with earnings momentum also set to wane after the end of the year, valuations will not be cheap starting next year.”
He also assessed that “the issuance of ADRs is neutral,” noting, “While it provides convenience for trading in overseas markets, the valuation of the underlying shares is not expected to change.”
◇KB and Hanwha: “AI Investment Still Ongoing”…Target Price in the 4 Million Won Range
In contrast, KB Securities and HANWHA INVESTMENT & SECURITIES, among others, expect AI investment to expand and memory supply shortages to persist, and thus maintained target prices around 4 million won.
KB Securities maintained its target price of 4.2 million won and its “Buy” rating. Kim Dong-won, Head of the Research Center at KB Securities, stated, “Global AI investment is expected to expand from $390 billion in 2025 to $1.1 trillion in 2027, representing a nearly threefold increase in just two years,” adding, “The share of memory in AI infrastructure investment is estimated to surge from 14% in 2025 to 50% in 2027. “Ultimately, the expansion of AI infrastructure investment is expected to directly lead to improved earnings for SK hynix,” he said.
The report also noted, “DRAM and NAND wafer production capacity in 2027 is projected to increase by only 7% and 4%, respectively, compared to the previous year. While supply growth is expected to be extremely limited through next year, demand growth rates are projected to reach 17% and 19%, respectively.” He continued, “The memory supply shortage in 2027 is highly likely to worsen compared to 2026,” adding, “With SK hynix’s stock currently trading at a 12-month forward P/E ratio of 4.5x, there is ample room for the stock price to rise, and we believe the semiconductor rally is not yet over.”
The listing of American Depositary Shares (ADS) in the U.S. was also cited as a factor for further revaluation. Center Director Kim explained, “The listing of U.S. ADRs will expand accessibility for global investors, and we expect the valuations of both the U.S. ADRs and the Korean shares to be revalued simultaneously in the future.”
HANWHA INVESTMENT & SECURITIES set the highest target price among securities firms at 4.3 million won. Park Jun-young, an analyst at HANWHA INVESTMENT & SECURITIES, said, “We are raising our forecast for the company’s DRAM price growth rate in the second half from 15% to 20% quarter-over-quarter,” adding, “We expect the company to achieve a higher rate of price growth in the second half than the market had anticipated due to its strategic price negotiations, and as a result, earnings expectations are also expected to be raised further.”
He continued, “Given its overwhelming valuation appeal and technological capabilities, the ADR listing presents a golden opportunity for the company to be revalued,” adding, “Factors such as further earnings upgrades, the sustainability of profits driven by long-term supply agreements (LTAs), and the revaluation opportunity stemming from the ADR are all converging.”
In addition, NH INVESTMENT & SECURITIES (4.1 million won), IBK Investment & Securities and KYOBOSECURITIESCO.,LTD. (4 million won), DaishinSecurities (3.9 million won), and SamsungSecurities (3.5 million won) are also maintaining target prices around 4 million won, citing expanding AI memory demand and HBM competitiveness.
Meanwhile, SK hynix closed at 2.18 million won during regular trading today, down 6,000 won (0.27%) from the previous session.