Market: KOSPI (000660)
Brokerage : Mirae Asset Securities
Analyst : Younggun Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 2,700,000 (Upgraded)
Core Momentum : Accelerating server CPU demand from the shift toward inference and agentic AI is expected to expand conventional DRAM demand, while HBM customer diversification and second-half HBM4 shipments support sustained earnings growth and pricing power.
📊 1. [Valuation & Key Financial Metrics]
- Equity Research Date: May 7, 2026
- Investment Rating: BUY (Maintained) / Target Price: KRW 2,700,000 (Upgraded)
- Current Price (as of 26/5/6): KRW 1,601,000 / Upside Potential: 68.6%
- Operating Profit (26F, KRW bn): 278,826 / Consensus Operating Profit (26F, KRW bn): 247,340
- EPS Growth (26F, %): 424.1 / MKT EPS Growth (26F, %): 223.0
- P/E (26F, x): 5.2 / MKT P/E (26F, x): 8.3 / KOSPI: 7,384.56
- Market Capitalization (KRW bn): 1,141,036 / Shares Outstanding (mn shares): 713 / Float Ratio (%): 75.1
- Foreign Ownership (%): 53.2 / Beta (12M) Daily Return: 1.66
- 52-Week Low / High (KRW): 186,000 / 1,601,000
- FY 2026F Estimates: Revenue KRW 355,195 bn, Operating Profit KRW 278,826 bn, Net Income KRW 220,736 bn, EPS KRW 308,999, ROE 96.0%, P/E 5.2x, P/B 3.3x, Dividend Yield 0.3%
- FY 2027F Estimates: Revenue KRW 507,470 bn, Operating Profit KRW 398,117 bn, Net Income KRW 305,392 bn, EPS KRW 428,499, ROE 62.3%, P/E 3.7x, P/B 1.8x, Dividend Yield 0.5%
🚀 2. [Market Opportunities & Business Outlook]
- The target price has been raised by 35% to KRW 2.7 million (from KRW 2.0 million), maintaining operating profit estimates at KRW 279 trillion for 26F and KRW 398 trillion for 27F. A global memory sector average P/B multiple of 4.5x has been applied, translating to a 12MF P/E of just 7.6x.
- Robust server CPU demand persists, with AMD’s 1Q26 server CPU revenue surging over 50% YoY, while the CAGR outlook for the server CPU TAM through 2030 has been doubled from +18% to +35%.
- As AI workloads shift from training to inference and agentic AI, the GPU-to-CPU attachment ratio is projected to rise from 8:1 to 4:1 and 1:1 or higher, accelerating big tech acquisition of server CPUs. This CPU demand directly flows into conventional DRAM demand such as DDR and LPDDR, optimizing product mix.
- SK hynix’s HBM momentum remains favorable: Google’s TPU v8t features 216GB of HBM3E (+13% vs. v7), while v8i features 288GB (+50% vs. v7). HBM3E demand continues to expand through Anthropic’s $200B Google Cloud and TPU spending commitment, alongside Amazon’s Trainium 3.
- Backed by second-half HBM4 shipments, HBM revenue is estimated at KRW 54 trillion in 2026 (YoY +72%), while 2027 revenue is expected to reach KRW 75 trillion (+KRW 21 trillion) driven by a projected 19.7% HBM ASP increase.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a prime beneficiary of surging server CPU demand and shifts in the GPU-to-CPU ratio driven by the transition toward agentic AI. This perspective emphasizes that the company is successfully diversifying its HBM3E customer base beyond NVIDIA to include major cloud players like Google, Amazon, and Anthropic, strengthening its supplier-led pricing power.
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking whether conventional DRAM demand benefits from the upward revision in the server CPU TAM outlook through 2030. In addition, it is necessary to verify whether second-half HBM4 shipments materialize into projected revenue expansion (KRW 54 trillion in 2026) and ASP increases. These developments can be tracked through corporate earnings releases, official IR materials, and regulatory filings.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
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