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<Research> Citi Raises SK Hynix (000660.KS) TP to KRW3.1M, Lifts Operating Profit Forecast; Rating Buy
Recommend 22 Positive 21 Negative 14 |
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Citi released a report expecting SK Hynix (000660.KS) to benefit from a strong uptrend in commodity memory average selling prices, as well as better-than-expected High Bandwidth Memory (HBM) price growth in 2H26. As HBM pricing in 4Q26 is projected to increase 30% QoQ, the bank expects SK Hynix to benefit from a favorable HBM product mix effect and firm commodity memory pricing supported by Anthropics recent updates, which more than doubled the token limit. The broker raised its TP from KRW1.7M to KRW3.1M and maintained a Buy rating. Citi expects memory average selling prices to continue rising in 2H26, driven by demand for HBM, server DDR5 and SoCAMM2. The bank forecasts SK Hynix will benefit from robust HBM price growth. It projects HBM average selling prices to increase 30% QoQ in 4Q26, supported by the HBM4 product mix effect and stronger-than-expected HBM3e demand. While pricing for mainstream server 64GB DDR5 RDIMM is expected to remain at peak levels, Citi believes SoCAMM2 will see broader adoption starting in 2H26, further lifting overall mobile DRAM pricing and offsetting the negative impact from weak smartphone demand. The report noted that, as customer demand for high-end memory procurement exceeds supply, Citi raised its 2026 server DDR5 DRAM average selling price growth forecast to 329% YoY (previously 308% YoY). Based on AI inference demand, the bank expects server DDR5 64GB DIMM pricing to rise from USD873 in 1Q26 to USD1,586 in 4Q26. For SSD, supported by KV cache memory demand, Citi forecasts 2026 SSD average selling prices to increase 267% YoY (previously 242% YoY). Citi also lifted its 2026 global DRAM and NAND average selling price forecasts, now expecting YoY growth of 200% and 186%, respectively (previously 190% and 172%). It projects global DRAM average selling prices to grow 200% YoY in 2026, driven by accelerating token demand amid capacity constraints. On a quarterly basis, the bank forecasts QoQ increases of 64%, 37%, 13% and 11% for 1Q26, 2Q26, 3Q26 and 4Q26, respectively (previously 64%, 34%, 10% and 4%). For NAND, it expects 2026 blended average selling prices to rise 186% YoY. Quarterly QoQ increases are projected at 63%, 45%, 17% and 6% for 1Q26 through 4Q26 (previously 63%, 43%, 11% and 3%). Citi raised its 2026 and 2027 operating profit forecasts for SK Hynix by 8% and 16% to KRW251 trillion and KRW347 trillion, respectively. (da/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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