SKHY Stock Forecast & Price Target

SK hynix is well positioned to benefit from a structurally tight memory market, with robust DRAM and NAND ASP gains, record 3Q26 revenue of KRW104.62T, and operating profit of KRW83.33T reflecting powerful pricing leverage. Its leadership in HBM4, which is expected to surpass HBM3E in 4Q26, plus 14 LTAs covering more than 50% of 2027 and 2028 capacity, gives unusual visibility and supports earnings acceleration as AI infrastructure demand remains strong. The balance sheet is also a tailwind, with KRW98.7T of net cash, roughly KRW42.1T of free cash flow in 3Q26, and around KRW100T of FY26 shareholder returns reinforcing capital discipline and downside support.

SK hynix is facing a weaker-than-expected industry backdrop, with DRAM and NAND supply-demand balance at risk of improving only sooner than 2H27 and significant oversupply potentially pressuring average selling prices and blended margins. The company’s outlook is also challenged by HBM share erosion as Samsung ramps HBM4 at NVIDIA, which could compress SK hynix’s roughly 55% share toward 40% or below and intensify price competition. Governance and geopolitical risks tied to its Korea domicile, along with China’s growing DRAM and NAND supply from CXMT and YMTC, add further downside to fundamentals and execution.