[Edaily Reporter Shin Ha-yeon ] An analysis has emerged suggesting that the current stock price of SK hynix(000660), which recently underwent a sharp correction, reflects excessive concerns. The assessment is that its medium- to long-term fundamentals remain intact, as memory inventory levels remain low and demand for artificial intelligence (AI) memory remains robust.

On the 30th, Shinhan Investment Securities maintained its “Buy” rating on SK hynix but lowered its target price from 3 million won to 2.7 million won. While the firm lowered its earnings estimates to reflect a conservative outlook on memory prices, it judged that the stock’s medium- to long-term investment appeal remains intact.

Kim Hyung-tae, a senior analyst at Shinhan Investment Securities, stated, “As of the end of the second quarter, memory inventory for both DRAM and NAND stands at just three weeks’ worth,” adding, “Even when applying conservative assumptions to account for market concerns, the supply shortage is expected to persist through 2027.” He continued, “While the pace of the stock price recovery may be somewhat slow due to the deteriorating supply-demand environment, we expect the stock price trend to resume in line with earnings momentum,” noting, “We assess the stock as being in an oversold zone.”

SK hynix’s second-quarter results—with revenue of 79.3 trillion won and operating profit of 60.5 trillion won—fell short of market expectations. However, analysts note that this was merely due to the rise in average selling prices (ASPs) for DRAM and NAND being lower than anticipated; profitability remained robust thanks to the high proportion of HBM sales.

Analyst Kim projected third-quarter revenue of 99.8 trillion won and operating profit of 77.2 trillion won. While he slightly lowered his previous price forecasts, he predicted that ASPs for both DRAM and NAND could rise by approximately 20%. He explained that the expanding share of high-value-added DRAM for servers and high-capacity eSSDs will continue to drive price increases in the second half of the year.

However, the target price was lowered to reflect a more conservative earnings outlook rather than a deterioration in market conditions. Shinhan Investment Securities revised down its operating profit estimates for 2026 and 2027 by 7% and 9%, respectively.

Analyst Kim stated, “It is too early to predict the peak of the cycle, as trends such as prolonged high profitability, upward momentum in spot prices, scale expansion, and AI infrastructure efficiency—which demonstrate solid fundamentals—are expected to continue.” He added, “While there are concerns about a faster-than-expected slowdown in demand, this argument lacks persuasiveness given the extremely low inventory levels.” He went on to emphasize, “Expectations for separate shareholder returns in the second half of this year remain valid, ahead of the announcement of the three-year shareholder return plan in the first quarter of 2027.”