SK Hynix has been positively evaluated for its growth prospects and mid‑term revenue outlook in the HBM (High Bandwidth Memory) business this year, while also recognizing that the stock price could become more volatile as competitors release additional HBM4 products. Accordingly, LS Securities adjusted SK Hynix’s target price to KRW 3.30 million from KRW 2.40 million.
First, researcher Jung Woo‑seong noted that if SK Hynix’s HBM OPM (Operational Performance Margin) rises to about 80%, global competitors such as NVIDIA would need to increase product prices in order to maintain their gross profit margin (GPM). This implies that a rise in memory prices could restrict the expansion of large‑server and general‑purpose DRAM markets.
Second, LS Securities explained that its target price adjustment is based on whether SK Hynix’s revenue and profitability improve next year rather than on changes in HBM demand or cycle. Researcher Jung pointed out that Samsung Electronics’ entry into HBM4 could lead to supplier concentration and a reduction of premium pricing.
Third, analysts expect SK Hynix’s stock price next year to move within a PBR (price‑to‑book‑ratio) range of 1.1–1.4, and emphasized that the rise in AI semiconductor demand will bring about‑next‑generation HBM production efficiency gains that could lift the share price.
Finally, LS Securities set its 2025 HBM margin target at 60% and said that as cost cuts and efficiency improvements come through, the HBM margin can again climb. This is expected to clarify SK Hynix’s market position further.