Hanwha Securities raises SK Hynix target price to 4.3 million won on AI, HBM prospects

Hanwha Investment & Securities has set a new highest target price of 4.3 million won for SK Hynix, signaling strong confidence in the memory chip giant's future performance.

The brokerage's upward revision reflects a belief that SK Hynix is poised to overcome the historical earnings volatility associated with the memory sector. This optimism stems from the significant growth in the artificial intelligence (AI) semiconductor market, which is expected to stabilize and improve the company's financial performance.

Analysts at Hanwha Investment & Securities argue that the traditional valuation methods applied to memory chip stocks are no longer suitable for SK Hynix. The increasing demand for AI-driven memory solutions, particularly High Bandwidth Memory (HBM), is seen as a key factor in reducing earnings fluctuations and enhancing profitability.

With a 'buy' rating maintained, the firm anticipates that SK Hynix will continue to benefit from the ongoing AI revolution, solidifying its position as a leading player in the advanced semiconductor market.