SK Hynix stock reaffirmed Buy at Nomura on strong DRAM performance

Published 25/07/2025, 06:18
SK Hynix stock reaffirmed Buy at Nomura on strong DRAM performance

Investing.com - SK Hynix (KS:000660) received a reiterated Buy rating and price target of KRW360,000.00 from Nomura/Instinet on Friday.

The South Korean memory chipmaker reported second-quarter 2025 sales of KRW22.2 trillion and operating profit of KRW9.2 trillion, slightly exceeding market expectations of KRW9.06 trillion but falling short of Nomura’s forecast of KRW9.42 trillion.

The company’s DRAM division outperformed expectations with shipment growth of 25% quarter-over-quarter, surpassing both Nomura’s 20% projection and SK Hynix’s initial 20% guidance, driven by pre-tariff demand.

DRAM average selling prices increased 3% quarter-over-quarter due to rising commodity prices and a higher proportion of HBM3E 12Hi products, indicating faster-than-expected cost reductions and exceptional profitability in the high-bandwidth memory segment.

The strong DRAM performance was partially offset by the NAND division, where increased sales of low-priced products caused average selling prices to fall 9%, resulting in losses that exceeded Nomura’s forecasts despite helping to rapidly reduce inventory levels.

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