SK hynix shares traded at $162.40 on Wednesday, an increase of 11.72% at publication time, according to Benzinga Pro data. Strong demand for AI memory, higher prices and constrained supply are driving analyst estimates upward and supporting expectations that the upcycle will continue. Cantor Fitzgerald analyst C.J. Muse and Rosenblatt analyst Kevin Cassidy identified AI infrastructure demand and memory supply constraints as central drivers.
Muse reaffirmed an Overweight rating and a $250 price forecast. Muse argued that SK hynix trades at approximately three times Muse's calendar 2027 earnings estimate despite the cycle being at an early stage. Muse forecasts calendar 2027 ADR-adjusted earnings per share of $42.50.
Muse projects December-quarter revenue of KRW 130 trillion. Muse forecasts a gross margin of 87.6% for the quarter. Muse expects an operating margin of 82.1%. Muse estimates quarterly earnings per share of KRW 119,891, equivalent to approximately $89.74 per ADR. Muse projects DRAM revenue of approximately KRW 102.2 trillion for the quarter. Muse forecasts quarterly NAND revenue of approximately KRW 27.5 trillion.
Muse said long-term agreements with 14 customers cover more than half of SK hynix's capacity for 2027 and 2028, improving revenue visibility. Muse highlighted management's assessment that current HBM demand is approximately double available supply. Cantor expects memory supply to fall short of demand through 2030 because of AI infrastructure spending, lengthy equipment lead times and limited capacity additions.
Cassidy retained a Buy rating and increased his price forecast from $320 to $400, using a valuation of 10 times next-12-month earnings. Cassidy raised his estimate for the 2027 corporate gross margin to approximately 85% as HBM4 production expands and HBM and conventional DRAM profitability converge. Rosenblatt increased its fourth-quarter revenue forecast from KRW 108 trillion to KRW 124 trillion. Rosenblatt raised its fourth-quarter earnings estimate from $6.33 to $7.74 per ADS.
Cassidy forecasts full-year 2026 revenue of KRW 360.5 trillion. Cassidy expects full-year 2026 earnings of $25.13 per ADS. Cassidy increased his 2027 revenue projection from KRW 529 trillion to KRW 587 trillion. Cassidy raised his 2027 earnings forecast from $29.64 to $36.87. Rosenblatt increased its 2028 revenue estimate from KRW 644 trillion to KRW 720 trillion. Rosenblatt raised its 2028 earnings estimate from $35.64 to $43.55.
SK hynix expects DRAM demand to increase in the mid-20% range in 2027. SK hynix forecasts NAND demand growth in the high teens for 2027. Demand is expected to remain above supply through 2030. SK hynix plans approximately KRW 100 trillion in shareholder returns in 2026. SK hynix plans dividends of at least KRW 30 trillion. SK hynix plans buybacks totaling KRW 60 trillion.
SK hynix expects a significant increase in capital spending in 2027 to expand HBM4 capacity and invest in advanced manufacturing. However, management said SK hynix can adjust the pace of spending to match demand.
SK Hynix Shares Rise 11.72% Amid AI Memory Shortage Crisis
BenzingaShare
Summary
SK hynix shares jumped 11.72% to $162.40 on Wednesday, as AI memory shortages push prices higher. Cantor Fitzgerald and Rosenblatt analysts cited AI demand and supply bottlenecks as main drivers. C.J. Muse at Cantor Fitzgerald keeps an Overweight rating with a $250 target. Kevin Cassidy of Rosenblatt raised his forecast to $400. SK hynix sees DRAM demand rising mid-20% by 2027 and NAND demand climbing in the high teens. The firm plans KRW 100 trillion in shareholder returns in 2026. Investors tracking altcoins to watch may also monitor the fear and greed index amid market volatility.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.