SK Hynix Surges 11% as AI Memory Shortage Hits Crisis Levels

SK hynix Inc. (NASDAQ:SKHY) is drawing bullish analyst calls as strong AI-related memory demand, rising pricing and tight supply push estimates higher and support expectations for an extended upcycle.

Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating with a $250 price forecast, arguing that SK Hynix trades at roughly three times his calendar 2027 earnings estimate even though the current cycle remains in its early stages.

Muse models calendar 2027 ADR-adjusted EPS of $42.50. For the December quarter, he expects revenue of KRW 130 trillion, gross margin of 87.6%, operating margin of 82.1% and EPS of KRW 119,891, or about $89.74 per ADR.

He expects DRAM revenue of about KRW 102.2 trillion and NAND revenue near KRW 27.5 trillion for the quarter.

Muse said SK hynix’s long-term agreements with 14 customers, covering more than half of 2027 and 2028 capacity, improve revenue visibility. He also highlighted management’s view that HBM demand currently runs at roughly twice available supply.

Cantor expects the memory market to remain undersupplied through 2030, supported by AI infrastructure spending, long equipment lead times and limited new capacity.

Rosenblatt Lifts Forecast To $400

Rosenblatt analyst Kevin Cassidy maintained a Buy rating and raised his price forecast to $400 from $320, based on 10 times next-12-month earnings.

Cassidy raised his 2027 corporate gross-margin estimate to about 85% as HBM4 ramps and the profitability gap between HBM and conventional DRAM narrows.

For the fourth quarter, Rosenblatt increased its revenue estimate to KRW 124 trillion from KRW 108 trillion and lifted EPS to $7.74 per ADS from $6.33.

For full-year 2026, Cassidy now expects KRW 360.5 trillion in revenue and $25.13 in EPS per ADS.

He raised his 2027 revenue forecast to KRW 587 trillion from KRW 529 trillion and EPS to $36.87 from $29.64. For 2028, Rosenblatt now models revenue at KRW 720 trillion and EPS at $43.55, up from KRW 644 trillion and $35.64, respectively.

AI Demand, Capital Returns Support Bull Case

Both analysts pointed to AI infrastructure demand and tight memory supply as key drivers.

SK hynix expects 2027 DRAM demand to grow in the mid-20% range and NAND demand in the high teens, while demand is expected to exceed supply through 2030.

The company also plans about KRW 100 trillion in shareholder returns in 2026, including at least KRW 30 trillion in dividends and KRW 60 trillion in buybacks.

SK hynix expects capital spending to rise significantly in 2027 as it expands HBM4 capacity and invests in advanced manufacturing, though management said it can pace spending according to demand.

SKHY Price Action: SK hynix shares were up 11.72% at $162.40 at the time of publication on Wednesday, according to Benzinga Pro data.

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