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Investing.com - Goldman Sachs has upgraded SK Hynix (KS:000660) from Neutral to Buy and more than doubled its price target to KRW700,000 from KRW300,000, citing expectations for "one of the strongest memory upcycles" through 2026.
The investment bank’s decision reflects its view that memory demand from servers will significantly outpace supply as hyperscalers increase AI spending. The new price target represents a 25% potential upside from current levels.
Goldman Sachs forecasts SK Hynix’s High Bandwidth Memory (HBM) volume will grow nearly 50% year-over-year, "meaningfully outgrowing consensus expectations." The firm also predicts new demand drivers in SOCAMM will reach 5% of global DRAM demand in 2026 and 9% in 2027.
According to Goldman Sachs estimates, almost the entire DRAM supply growth next year (54 billion gigabytes) will be absorbed by incremental server-related DRAM demand (53 billion gigabytes).
While consensus earnings expectations for SK Hynix have risen rapidly since September, Goldman Sachs believes "substantial upside remains" based on these strong AI-driven demand factors.
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