SKHY Stock Forecast & Price Target

SK hynix is favored because its core DRAM and NAND businesses are both benefiting from robust pricing, with September-quarter DRAM revenue up 35% Q/Q and NAND revenue up 19% Q/Q, while HBM4 is ramping and expected to surpass HBM3E in 4Q26. The company’s technology leadership and tight supply backdrop support a durable earnings upcycle, as management cited customer HBM demand at more than 2x current supply capability and signed 14 LTAs covering over 50% of total capacity for CY27/CY28. Strong cash generation and shareholder returns further reinforce the case, with around ₩100T planned for FY26 and net cash of ₩98.7T in 3Q26, giving the stock both growth and capital-return support.

SK hynix is facing a tougher fundamental backdrop because industry demand appears weaker than forecast, while oversupply in DRAM and NAND could arrive sooner than the current model assumes, pressuring pricing and blended margins. Its exposure to data center demand and HBM is a key risk, as hyperscaler capex moderation and Samsung’s HBM4 ramp could erode SK hynix’s roughly 55% HBM share toward 40% or below, reducing revenue growth and competitive positioning. Governance and geopolitical risks tied to Korea domicile, China-U.S. tensions, and potential setbacks in LTAs add further uncertainty, even as SK Square holds 20% of shares and SK hynix remains a 29% DRAM and 22% NAND leader.