KB Securities Raises SK Hynix Price Target to 1.9 Million Won on Strong AI Demand

The AI boom has fueled demand for high-performance memory, making South Korean semiconductor giant SK Hynix a critical part of the global supply chain. With international investors sharply focused on AI hardware infrastructure, the company’s technological lead and market valuation have become gauges of the technology sector’s health. They also directly influence capital flows into Taiwan’s memory and optical communications stocks, drawing intense market attention.

SK Hynix’s American depositary receipts surged 27.3% in their first three days of trading, with their premium soaring to 51% in July 2026. The fervor helped drive South Korea’s KOSPI up nearly 8% intraday to touch 7,400, while SK Hynix shares in Seoul jumped 12%. Barclays subsequently raised its price target for SK Hynix to $330, saying a severe global memory shortage was only just beginning.

SK Hynix is one of the world’s leading memory manufacturers. Its long-term supply agreements traditionally included price caps to reduce cost volatility for customers. As AI servers drive widespread adoption of high-bandwidth memory (HBM), DRAM supply and demand have tightened. Removing the caps allows contract prices to rise with spot-market rates, further expanding profit potential.

SK Hynix recently removed memory price caps from all of its latest long-term supply agreements, allowing contract prices to directly reflect market increases. Analysts estimate that demand for HBM and AI could push its DRAM gross margin close to 90% in the second quarter of 2026, challenging its record high. The forecast has also fueled debate over whether profitability is nearing its ceiling.

SK Hynix is a major supplier of high-bandwidth memory (HBM) to AI chipmakers including NVIDIA. The expansion of AI data centers by Microsoft, Google and Meta has driven up memory demand and prices. As of 2025, SK Hynix held 61% of the global HBM market, far ahead of Samsung Electronics’ 17%, making it a key force reshaping South Korea’s semiconductor industry.

SK Hynix shares closed 5.6% higher on June 22, 2026, lifting its market capitalization to 2,080.4 trillion won, or about $1.35 trillion. That surpassed Samsung Electronics’ 2,066.7 trillion won valuation excluding preferred shares, ending Samsung’s reign as South Korea’s most valuable company since 2000. SK Hynix also plans to issue about $27 billion of American depositary receipts on Nasdaq as early as mid-to-late July.

SK Hynix is a major South Korean memory-chip maker and a key supplier of high-bandwidth memory, or HBM, to NVIDIA. As generative AI and high-performance computing expand, HBM has become a critical component in AI accelerators, prompting investors to reassess the company’s growth potential and industry position.

In the latest trading as of July 2026, SK Hynix’s market capitalization exceeded $1 trillion, making it the third Asian company to cross that threshold. Its shares have doubled so far this year and reached a record high, bringing its market value close to that of Samsung Electronics. Micron also crossed the $1 trillion mark over the same period, while UBS raised its price target for the company to $1,525.

Generative AI has fueled demand for high-bandwidth memory (HBM) and server chips, putting Samsung Electronics and SK Hynix at the center of the global AI supply chain. Hedge funds are bullish on South Korea’s leadership in the memory market, betting that AI investment can continue to generate steady cash flow. Semiconductor stocks have consequently become the main engine driving South Korean equities higher.

Since the start of 2026, shares of Samsung Electronics and SK Hynix have risen 128% and 188%, respectively, helping the KOSPI surge about 80% and break above 8,000 for the first time. As South Korean retail investors chase the rally, margin-financing balances have climbed to 36 trillion won, boosting brokerage interest income while underscoring growing leverage and the rising risk of buying at elevated prices.

SK hynix is a leading global supplier of high-bandwidth memory, or HBM. Its operating profit could double as the expansion of generative AI model training drives memory demand. HBM has become a critical component in the AI server supply chain, and the company’s earnings directly affect whether semiconductor employees share in the industry’s gains.

As of July 20, 2026, SK hynix shares had surpassed 1.2 million won to reach a record high. After the company adopted a bonus system tied to operating profit, analysts estimated that employees’ average annual profit-sharing bonus could reach 700 million won, or about NT$15 million. Related reports put the amount at between NT$13 million and NT$15 million.

Rising demand for AI servers and high-bandwidth memory, or HBM, is transforming memory from a highly cyclical component into a core driver of AI performance and costs. Technology companies are also negotiating three- to five-year supply contracts, improving earnings visibility for Samsung Electronics and SK Hynix and creating room for a valuation rerating.

On May 7, 2026, SK Securities raised its target prices for Samsung Electronics and SK Hynix to 500,000 won and 3 million won, respectively. It estimated their 2027 operating profits at 49.4 trillion won and 37.6 trillion won. In April, KB Securities forecast Samsung's 2027 operating profit at 488 trillion won, slightly above Nvidia's 485 trillion won.

SK Hynix is one of the world's leading memory manufacturers and a key supplier of high-bandwidth memory, or HBM, used in AI accelerators. As technology companies worldwide expand investment in AI infrastructure, demand is rising for HBM and enterprise solid-state drives, or eSSDs. These high-value products have become the main engines of the company's revenue and profit growth.

SK Hynix reported first-quarter 2026 revenue above 50 trillion won for the first time, while its net margin reached 77% and its operating margin hit 72%, both records. The results sent its shares up 11% in a single day and lifted its market capitalization above 1,000 trillion won, equivalent to about $710 billion, reflecting continued market optimism over AI memory demand.