SK Hynix expects memory demand to outpace supply through 2030, citing AI adoption, the difficulty of advanced chipmaking and long lead times for new capacity.
- Rosenblatt’s $400 target implies about 175% upside potential from SKHY’s Tuesday close.
- SK Hynix expects HBM4 to overtake HBM3E in both shipments and revenue in the fourth quarter.
- Long-term supply deals with 14 major customers cover more than half of SK Hynix’s planned 2027–2028 production capacity.
SK Hynix Inc. (SKHY) shares drew investor attention on Wednesday after Rosenblatt raised its price target by 25% following the chipmaker’s fiscal third-quarter earnings report.
Rosenblatt raised its target to $400 from $320 while maintaining a ‘Buy’ rating on the stock. According to TheFly, the firm cited a 20% sequential increase in DRAM average selling prices in its post-earnings note.
As of this writing, SKHY stock was up over 7% in premarket trading and was among the top-trending tickers on Stocktwits. Shares of other memory chipmakers also advanced, with Micron Technology (MU) gaining over 3% and SanDisk (SNDK) climbing more than 4%.
Even Western Digital Corp (WDC) stock was trading more than 1% higher.
Rosenblatt Sees 175% Upside Potential For SKHY
Rosenblatt’s revised target implies a potential upside of around 175% for SKHY stock from Tuesday’s close. The revision comes as SK Hynix expects demand for memory chips to continue outpacing supply through 2030.
“We will carry our HBM competitiveness over to next-generation products, and we will also increase the rewards we share with our shareholders as our business outcome and investment result grow,” said CEO Kwak Noh Jung.
SK Hynix Reports Record Results
SK Hynix reported record third-quarter revenue of 104.6 trillion won ($78.2 billion), up 32% sequentially, while operating profit climbed 38% from the previous quarter to 83.3 trillion won ($62.1 billion).
The company said higher sales of server DDR5 products and growing shipments of high-bandwidth memory chips supported its performance.
SK Hynix expects its next-generation HBM4 products to surpass HBM3E in both shipment volume and revenue during the fourth quarter. The company has secured long-term supply agreements with 14 major customers, covering more than half of its planned production capacity for 2027 and 2028.
SK Hynix Sees Memory Shortage Persisting Through 2030
SK Hynix expects memory demand to outpace supply through 2030, citing growing AI adoption, the technical challenges of advanced chipmaking and the long lead times required to expand production capacity.
The company expects further revenue and profit growth in 2027 and plans to significantly increase investments next year to support rising demand. SK Hynix management also highlighted stronger long-term demand visibility.
What Retail Thinks About SKHY Stock
On Stocktwits, retail investors’ Sentiment around SKHY stock improved to ‘extremely bullish’ from ‘bullish’ a day ago amid high user message volume.
So far this year, SKHY stock has declined over 13%. By comparison, the Roundhill Memory ETF (DRAM), which holds SKHY, MU, WDC, and SNDK stocks, has risen nearly 82% during this period.
(1 KRW = 0.0007476 USD)
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