[Edaily Reporter Kwon Oh Seok ] SK hynix(000660)has rewritten semiconductor history by posting record-breaking earnings. Amid an ongoing shortage of high-performance memory semiconductors driven by expanding investment in artificial intelligence (AI) infrastructure, securities analysts are focusing on SK hynix’s growth potential and shareholder return policies, believing the stock price has the potential to more than double from current levels. Of course, pessimism persists that memory demand has already peaked.

SK hynix announced on the 28th that it recorded consolidated revenue of 104.6155 trillion won, operating profit of 83.3338 trillion won, and net income of 39.7756 trillion won for the third quarter of this year. This marks the first time quarterly revenue has exceeded 100 trillion won, with revenue and operating profit increasing by 327.9% and 632.1%, respectively, compared to the same period last year. Operating profit set a new record high for the sixth consecutive quarter.
These results were driven by the artificial intelligence (AI) memory product line, including High-Bandwidth Memory (HBM). As HBM4 shipments gained momentum and sales of server-grade DDR5 increased significantly, they led the growth in DRAM performance.
SK hynix has signed long-term supply agreements (LTAs) with 14 major customers and is proactively discussing extending the contract terms—which are typically five years—with some of them. The company explains that HBM and DRAM (RAM) orders are virtually sold out through 2029, with HBM demand exceeding twice the available supply, indicating that memory demand will remain strong through 2030.
The securities industry is unanimous in its view that the stock price is excessively undervalued relative to its strong fundamentals. The highest target price, set at 4 million won by SKSecurities and KYOBOSECURITIESCO.,LTD., is roughly three times the previous day’s (30th) closing price of 1,418,000 won.
Han Dong-hee, an analyst at SKSecurities, emphasized, “Considering the strong rationale for AI infrastructure investment, the structural nature of memory demand, and the potentially very high costs of violating the LTA, we are entering a phase where earnings visibility and stability are improving simultaneously.” Choi Bo-young, an analyst at KYOBOSECURITIESCO.,LTD., also predicted, “Based on the high demand visibility secured through 2029 and the diversification of AI investors, a long-term profit growth cycle is expected to continue.”
The shareholder return plan is another factor fueling expectations for a stock price rebound. On the day of the earnings announcement, SK hynix also unveiled an additional shareholder return plan worth 60 trillion won. Including the 40 trillion won share buyback and cancellation plan announced last August, the company is effectively pursuing 100 trillion won in shareholder returns this year. Of the shares to be repurchased, 10 trillion won worth—intended for shareholder returns—will be fully canceled, while the remaining approximately 10 trillion won will be used for employee compensation.
SK hynix plans to repurchase and cancel 50 trillion won worth of treasury stock—comprising the previously announced 40 trillion won and the 10 trillion won announced this time—and to return the funds, excluding dividends paid for the first three quarters of this year, in the fourth quarter. The third-quarter dividend is 20,000 won per share, consisting of a 10,000-won dividend reflecting improved earnings and a 10,000-won special dividend sharing the returns from the Kioxia investment. The company has decided to return most of the profits realized from this year’s Kioxia investment to shareholders. Through this, the company plans to fulfill its promise to return more than 50% of its free cash flow (FCF).
Kim Dong-won, Head of Research at KB Securities, stated, “This record-breaking shareholder return totaling 100 trillion won is expected to serve as a decisive turning point in the revaluation of SK hynix’s corporate value.” He added, “Given that the company has begun in earnest to enhance shareholder value, we expect this strengthened shareholder return policy to serve as an opportunity to bridge the gap between corporate value and the stock price.” He set a target price of 3.5 million won.
Kim Rok-ho, an analyst at Hana Securities, set a target price of 3.6 million won, noting, “Even amid constraints on both price and volume, the company has established a basis for upward earnings revisions and shared a clear shareholder return policy; therefore, we expect the stock price to react positively.” He added, “If confidence in medium- to long-term earnings and the shareholder return policy builds, the valuation multiple is also likely to be reassessed. “Since the scale of shareholder returns amounts to 10% of market capitalization, we believe the stock is currently significantly undervalued,” he added.
Of course, there are also a few skeptical voices. BNK Investment & Securities has set the lowest target price at 1.65 million won. Lee Min-hee, an analyst at BNK Investment & Securities, pointed out, “The trend of memory demand momentum peaking in the second quarter and then slowing down is expected to continue,” adding, “Credit risks for AI companies will resurface as long as high interest rates persist, and this will also affect the sustainability of the investment cycle going forward.”