LS Securities announced on June 29 that it has raised its target price for SK Hynix from 2.1 million won to 3.3 million won, citing expectations for an increase in the average selling price (ASP) of high-bandwidth memory (HBM) by the end of the year. The firm maintained its investment rating at 'Buy.'
Jung Woo-sung, a researcher at LS Securities, noted, "Since the end of last year, the price of general-purpose DRAM has increased more than threefold. There is a high likelihood of price increases in the upcoming negotiations for HBM supply volumes and prices with major clients scheduled for the end of this year."
However, he cautioned that the pricing of HBM is influenced not just by supply and demand but also by factors such as bandwidth, power efficiency, and customer certification, suggesting that price increases may be limited compared to general-purpose DRAM.
LS Securities also assessed that concerns regarding SK Hynix's technological competitiveness have largely been alleviated. Jung stated, "On June 18, SK Hynix supplied samples of its 12-layer HBM4E to major clients, achieving data transfer speeds of up to 16 Gbps, demonstrating the performance competitiveness of its next-generation products."
He added that the application of the proven 'Advanced MR-MUF' technology has reduced yield risks, enhancing SK Hynix's position as a leading supplier in the HBM market for NVIDIA, with a strong likelihood of maintaining this status through next year.
The growth potential and profit visibility of the HBM business are also expected to improve significantly. Jung remarked, "We have reaffirmed our technological leadership with HBM4E, and as investments in AI infrastructure are recognized as a national strategic industry, confidence in the sustainability of these investments is increasing."
* This article has been translated by AI.
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