KB Raises SK Hynix Target to 2 Million Won, Says 1,000 Trillion-Won Market Cap Is New Floor

KB Securities on April 24 raised its target price on SK Hynix Inc. to 2 million won from 1.9 million won, saying a 1,000 trillion won ($699 billion) market capitalization will likely serve as a meaningful valuation floor. It maintained a buy rating.

KB Securities analyst Kim Dong-won said SK Hynix's operating profit will reach 25.7 trillion won ($18 billion) this year and 39.4 trillion won ($27.5 billion) next year, placing it among the world's top three companies by operating profit. The stock nevertheless trades at just 3.3 times forward 12-month earnings.

Based on the previous day's closing price of 1.225 million won, SK Hynix had a market capitalization of 873.0605 trillion won ($610 billion), 14.41% below the 1,000 trillion won level. The stock would need to reach 1,401,523 won to hit that valuation.

SK Hynix posted about 7.36 trillion won ($5.14 billion) in first-quarter operating profit. Kim said the result came in slightly below recent consensus, but adjusted operating profit rose to 8.42 trillion won ($5.88 billion) after reflecting a bonus provision equal to about 10% of operating profit, amounting to an effective earnings surprise.

KB Securities said the memory-chip market will heat up further as artificial intelligence shifts from training-focused generative AI to agentic AI that can make decisions and execute tasks on its own. That transition is making higher memory content a structural necessity.

Memory capacity will emerge as a key variable determining overall AI system performance, Kim added.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com