Market: KOSPI (000660)
Brokerage : Hyundai Motor Securities
Analyst : Geun-chang Noh / RA : Ki-woong Ahn
Investment Rating : BUY
Target Price : KRW 2,650,000 (Upgraded)
Core Momentum : Expanding Agentic AI adoption is expected to intensify CPU and memory demand, while the transition toward Edge and Physical AI broadens demand sources and could mitigate traditional memory-cycle volatility and chasm risks.
📊 1. [Valuation & Key Financial Metrics]
- Company Note Date: May 13, 2026
- Investment Rating: BUY / Target Price: KRW 2,650,000 (Upgraded)
- Current Price (as of 05/12): KRW 1,835,000 / Upside Potential: 44.4%
- Market Capitalization: KRW 1,307,809 billion / Shares Outstanding: 712,702k shares
- Capital Stock / Face Value: KRW 3,658 billion / KRW 5,000 / 60-Day Average Trading Value: KRW 4,999 billion
- Foreign Ownership: 52.78% / Major Shareholder Stake (SK Square & 8 others): 20.50%
- Summary Earnings Estimates (2026F): Revenue KRW 385,521 bn, Operating Profit KRW 258,818 bn, Net Income KRW 225,583 bn, EPS KRW 315,783, P/E 3.9x, P/B 2.5x, ROE 97.1%
- Summary Earnings Estimates (2027F): Revenue KRW 502,188 bn, Operating Profit KRW 337,221 bn, Net Income KRW 281,609 bn, EPS KRW 395,129, P/E 3.1x, P/B 1.4x, ROE 58.2%
🚀 2. [Market Opportunities & Business Outlook]
- SK hynix’s 6-month target price has been raised from KRW 1,650,000 to KRW 2,650,000, calculated as the average of KRW 1,650,000 (applying a Target P/B of 3.5x to 26F controlling shareholder BPS) and KRW 3,650,000 (applying a Target P/E of 7.6x to 26F controlling shareholder EPS).
- The Target P/E applies the average FY27 P/E of overseas memory semiconductor peers including Kioxia, Micron, and SanDisk, maintaining a BUY rating.
- Amid soaring memory semiconductor prices, the company’s annual revenue is projected to rank third globally among semiconductor enterprises, accompanied by top-tier profitability.
- Agentic AI is expected to require four times more CPUs per gigawatt than generative AI, and the resulting surge in CPU demand is projected to further intensify memory semiconductor supply shortages.
- Amid transitions from Cloud AI to Edge AI and Physical AI, if AI semiconductor demand evolves from AIDC to AIRAN and Physical AI, the intensity and duration of the anticipated chasm could be mitigated, potentially reducing industry volatility compared to the past.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a high-value semiconductor enterprise capable of dampening traditional memory cycle volatility and chasm risks, backed by diversified demand structures driven by AI innovation (expanding from Cloud AI into Edge and Physical AI) while capturing top-tier global revenue scale and profitability. This perspective places major emphasis on structural fundamental enhancements aligned with advanced AI infrastructure rather than short-term cyclical upturns alone.
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking whether expanding Agentic AI adoption exacerbates CPU and memory semiconductor supply constraints, and observing if demand shifts from AIDC toward AIRAN and Physical AI successfully translate into resilient earnings and margins. In addition, it is necessary to verify the validity of the blended P/B and P/E valuation methodology and inspect earnings sustainability through periodic earnings releases and corporate IR materials. These developments can be tracked through corporate earnings releases, official IR materials, and regulatory filings.
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