[Edaily Reporter Kim Hyung-il ] SKSecurities maintained its “Buy (BUY)” investment rating and target price of 4 million won for SK hynix(000660). Although second-quarter earnings fell slightly short of market expectations due to the postponement of some high-value-added memory shipments to the third quarter, the firm forecast that the strong market conditions centered on artificial intelligence (AI) memory will continue.

On the 30th, Han Dong-hee, an analyst at SKSecurities, stated, “Contrary to market concerns, there has been no change in the profit-growth trend of the memory market,” adding, “As AI investment continues and supply shortages persist, the supply shortage is expected to intensify further by 2027.”

SK hynix’s operating profit for the second quarter of this year was 61 trillion won, a 19% increase from the previous quarter, but slightly below market expectations (consensus). Analyst Han attributed this to the fact that full-scale shipments of high-value-added memory products were partially delayed until the third quarter.

SKSecurities estimated that second-quarter shipments of DRAM and NAND—key memory semiconductors—increased by 9% and 14%, respectively, compared to the previous quarter, while average selling prices (ASPs) rose by 29% and 54%, respectively. Operating profit was estimated at 46 trillion won for DRAM and 15 trillion won for NAND, with operating profit margins of 79% and 69%, respectively, maintaining industry-leading profitability.

An analyst predicted that the memory supply shortage would continue for the time being. The analyst explained that current inventory levels—at suppliers and hyperscalers—stand at approximately three weeks and five to seven weeks, respectively, which is only half of normal inventory levels, and that the demand fulfillment rate remains below 70%.

Furthermore, the analyst noted that long-term supply agreements (LTAs) serve to enhance demand forecasting accuracy and earnings stability rather than causing growth to slow, and predicted that the supply shortage will persist structurally due to the expansion of memory production for AI servers. Accordingly, DRAM prices in the third quarter are expected to rise by 19% quarter-over-quarter, contrary to market concerns.

One analyst stated, “Investment in AI infrastructure is continuing, and profit visibility is improving through long-term supply agreements,” adding, “Once shareholder return policies are fully implemented in the second half of the year, there will be a reassessment not only of earnings growth but also of profit-generating capacity and sustainability.” The analyst continued, “It is highly likely that shareholder return policies will become more concrete around the time of the third-quarter earnings announcement, when net cash is expected to reach 100 trillion won.”