Experts Have Jumped In: "Headed for 4 Million Won" — SK Square Surges Alongside SK hynix Rally

SK hynix Closes the Gap with Samsung Electronics
Market Cap Surges Ninefold in One Year

Nomura Securities recently released a report significantly raising its target price for SK hynix from 2.34 million won to 4 million won.

The closing prices of KOSPI, Samsung Electronics, and SK Hynix are displayed at the Korea Exchange Seoul Office in Yeongdeungpo-gu, Seoul. Photo by Yonhap News Agency

According to the financial investment industry on May 23, global investment banks and domestic securities firms are continuously raising their earnings forecasts and target prices for SK hynix, reflecting the improving semiconductor market and the expanding demand for artificial intelligence (AI). The target price for SK Square, the largest shareholder, is also being revised upward amid expectations of benefiting from these trends.

According to the Korea Exchange, as of May 21, SK hynix's share price had risen by 198.16% since the beginning of this year, while SK Square surged by 222.01%. Securities analysts have pointed out that SK hynix is directly benefiting from increased investment in AI servers and rising demand for high-bandwidth memory (HBM), thanks to its business structure centered on memory semiconductors. There is also speculation that SK hynix could catch up to Samsung Electronics, the leading stock on the KOSPI, amid the AI semiconductor supercycle.

The gap in market capitalization between the two companies is also narrowing rapidly. As of the closing price on May 21, SK hynix’s market capitalization stood at 138.3 trillion won, a 9.47-fold increase from 14.6 trillion won a year ago. During the same period, Samsung Electronics’ market capitalization rose from 330 trillion won to 1,751 trillion won, a 5.31-fold increase. As a result, SK hynix has risen from 44% of Samsung Electronics’ market capitalization to about 79%.

Securities firms are continuing to raise their target prices. Shinhan Securities doubled its target price for SK hynix to 3.8 million won, and Korea Investment & Securities also raised its target from 2.05 million won to 3.8 million won. SK Square, which holds a 20.1% stake in SK hynix, is also seeing higher expectations of benefits. DB Financial Investment increased its target price for SK Square from 740,000 won to 1.45 million won, while BNK Investment & Securities raised it to 1.4 million won.

Chae Minsook, a researcher at Korea Investment & Securities, commented, "Memory semiconductors are being re-evaluated as core assets for AI infrastructure," adding, "Both the current and target valuations are reasonable, even considering growth and profitability sustainability." Shin Eunjeong, a researcher at DB Financial Investment, analyzed, "SK Square's net asset value (NAV), reflecting the rise in SK hynix shares, is about 273 trillion won," and emphasized, "The expansion of equity value and shareholder return policies are the key investment points."

This content was produced with the assistance of AI translation services.