SK Hynix Shares Hit New High – Analysts Raise Price Target

A look at SK Hynix’s record-breaking 2025 and the risks and opportunities ahead for investors

SK Hynix share price (000660.KS) is once again riding high, reaching a new all-time peak of ₩298,500, before settling at ₩293,000 for a 2.45% gain on Thursday's session. This surge marks another milestone in a year of impressive gains, fueled by the company's dominance in the high-bandwidth memory (HBM) market, a critical component for the burgeoning artificial intelligence (AI) sector.

The stock has jumped 71.14% year-to-date, and an impressive 246% over the past five years, leaving some to wonder whether this iss just the beginning, or if a correction might be on the horizon.

The past week alone has seen SK Hynix shares climb 17.67%. This upward momentum is supported by positive signals from both short- and long-term moving averages, painting a bullish picture for the near future.

Whilst there are broader market reasons for the recent growth, with the KOSPI itself having gained 28% since the start of the year, much of SK Hynix's success can be attributed to its leadership in HBM technology, particularly the fifth-generation HBM3E, which is in high demand for AI applications and data centers.

Nvidia CEO Jensen Huang's request in late 2024 for SK Hynix to expedite HBM4 supply underscored the company's pivotal role in the AI ecosystem. This demand translated into a record-breaking Q4 2024, with operating profit soaring by 2,236% year-on-year, reaching ₩8.08 trillion ($5.64 billion USD), and revenue jumping 75% to ₩19.77 trillion.

Looking ahead, analysts are optimistic about SK Hynix's Q2 2025 results, projecting sales of ₩20.2 trillion (up 23% year-over-year) and an operating profit of ₩8.8 trillion (up 61% year-over-year), both potentially setting new company records. This strong performance is expected to be driven by the company's continued leadership in advanced memory products tailored for AI and data centers.

Major brokerages have responded by raising their price targets, with Korea Investment & Securities setting a target of ₩340,000 and Nomura raising its target to ₩360,000, both maintaining a “Buy” rating

However, the path to continued growth is not without its potential pitfalls. The emergence of lower-cost AI models, such as the open-source R1 model from Chinese startup DeepSeek, has raised concerns about increased competition and potential impacts on SK Hynix's market share. While SK Hynix currently holds a leading position in DRAM production, surpassing Samsung Electronics in Q1 2025 with a 36.9% market share, this dominance could be challenged as other players ramp up their HBM production capabilities.

Despite these challenges, SK Hynix is strategically positioning itself for long-term success. The company's parent group, SK Group, recently announced a partnership with Amazon Web Services (AWS) to establish South Korea's largest AI data center. The company's focus on becoming a “total AI memory provider” also suggests a proactive approach to capturing future growth opportunities in the AI space.

New highs are coming thick and fast for the stock price, yet with the psychological level of ₩300,000 moving ever closer, a pause for breath cannot be dismissed.