Kiwoom Securities Lifts SK hynix Target Price Amid Strong Earnings Momentum

 

A Positive Outlook for Korea’s Semiconductor Leader

South Korea’s semiconductor industry continues to capture global attention, and SK hynix is once again emerging as one of the strongest performers. On November 19, Kiwoom Securities released a new report projecting sustained earnings momentum for the company. The firm raised its target price from ₩650,000 to ₩730,000, citing stronger-than-expected results across both DRAM and NAND segments.

Fourth-Quarter Earnings Expected to Surpass Market Forecasts

According to Kiwoom Securities, SK hynix is projected to record an operating profit of ₩15 trillion in the fourth quarter, representing a 32% increase from the previous quarter. This outlook beats the broader market consensus of ₩14.1 trillion. Analysts attribute this jump to rising memory prices, healthier inventory levels, and stronger server-related demand.

Rising Memory Prices Drive Momentum

The report highlights a notable 37% quarter-over-quarter rise in fixed prices for general-purpose memory products. Kiwoom Securities notes that additional price increases may still occur before the quarter closes, further lifting overall profitability expectations. The rebound in demand, combined with limited supply, is supporting this price recovery cycle.

Strong Growth Across DRAM and NAND Segments

Breaking the numbers down further, SK hynix is expected to achieve ₩14.1 trillion in DRAM operating profit and ₩900 billion in NAND, marking growth of 28% and 171% respectively. This reflects both higher selling prices and improved cost efficiencies, as well as favorable market conditions across global tech sectors.

Looking Ahead: 2026 Earnings Could Reach New Heights

Kiwoom Securities forecasts a significant leap in SK hynix’s performance over the next two years. By 2026, annual operating profit is expected to reach ₩80 trillion, an impressive 86% increase compared with the previous year. Even during the typically slow first quarter, earnings are projected to hit ₩17.3 trillion, notably higher than the market expectation of ₩14.9 trillion.

General-Purpose DRAM to Play a Larger Role

One of the most important insights in the report is the expanding role of general-purpose DRAM. Kiwoom Securities expects its contribution to DRAM profits to rise from 50% in 2024 to around 70% by early 2026. Operating margins for this segment are projected to climb from 50% to 70% over the same period. Tight supply, improving server demand, and reduced availability of DDR5 due to production shifts are driving this trend.

NAND Market Begins to Benefit From Recovery

The positive momentum is no longer limited to DRAM. Kiwoom Securities points out that the NAND market is starting to show signs of recovery as well. Strong enterprise SSD demand and rising product prices are expected to push NAND profitability sharply higher. For 2026, the brokerage forecasts ₩75.1 trillion in DRAM profit and ₩5 trillion in NAND profit, representing year-over-year increases of 78% and 400%.

SK hynix Remains a Top Pick in the Semiconductor Sector

Although rapidly rising DRAM prices could eventually soften PC and smartphone demand, Kiwoom Securities believes this risk is manageable for now. With price forecasts and market expectations continuing to move upward, SK hynix is well-positioned for further share price gains. The firm maintains its view of SK hynix as its “Top Pick” in the semiconductor industry, emphasizing the company’s strong fundamentals and growth trajectory.

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