Hyundai Motor Securities reported on June 25 that it expects a supply shortage of memory semiconductors at SK Hynix to persist until 2028, raising its target stock price from 2.65 million won to 3.3 million won. The investment recommendation remains a "buy."
Analyst Roh Geun-chang from Hyundai Motor Securities anticipates that the company's second-quarter performance will exceed previous forecasts due to rising memory prices and a weaker Korean won. He projects SK Hynix's second-quarter revenue and operating profit to reach 90.4 trillion won and 63.4 trillion won, respectively.
Roh stated, "The increase in memory prices is larger than expected, and the depreciation of the won will contribute to continued performance improvement."
Hyundai Motor Securities' analysis indicates that the supply shortage will continue. Roh noted that while SK Hynix is expanding its production capacity, particularly at the M15X facility, the increase in DRAM wafer production capacity by the end of this year is expected to be only about 8% compared to the first quarter.
The NAND market is also projected to face ongoing supply shortages. With limited capacity expansion across the industry and rising demand for SSDs driven by the proliferation of artificial intelligence (AI) services, the supply-demand imbalance is expected to persist until the end of next year.
Considering the increased investment capacity of data center operators and the introduction of NVIDIA's next-generation platform, Rubin Ultra, which will increase the deployment of high-bandwidth memory (HBM), Roh predicts that the supply shortage could last until 2028.
* This article has been translated by AI.
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