SK Hynix is forecast to post record-breaking Q2 operating profit of 63.55 trillion won on revenue of 83.46 trillion won, according to a survey of 14 securities firms conducted by Yonhap Infomax on the 28th. The projected figures represent year-over-year increases of 589.82% in operating profit and 275.41% in revenue compared to the same period last year. The surge is driven by expanded sales of high-bandwidth memory (HBM) and other high-value DRAM products, alongside rising prices for general-purpose DRAM and NAND flash memory. AI data center investments have fueled HBM demand while constrained supply has pushed up prices for server DRAM and enterprise solid-state drives (SSDs). The consensus reflects analyst estimates submitted within the past month, with operating profit margins expected to reach approximately 76%. Compared to the previous quarter, revenue is projected to increase by approximately 58.7% and operating profit by 69.0%.
HBM Demand and Memory Price Increases Drive Q2 Profit Surge
Kim Sun-woo, a researcher at Meritz Securities, estimated SK Hynix's Q2 operating profit at 60.1 trillion won. Kim projected that average selling prices (ASPs) for DRAM and NAND would rise by 30% and 49% respectively compared to the previous quarter. Kim noted that partnerships with customers through long-term supply agreements (LTAs), equity swaps, and joint venture establishments are expected to improve mid- to long-term demand predictability for memory and reduce price volatility. The analysis attributes the core profit surge to expanded sales of high-value DRAM including HBM, combined with price increases across general-purpose DRAM and NAND flash memory segments.
Kioxia Investment to Add 41.6 Trillion Won in Non-Operating Income
Kim Sun-woo of Meritz Securities estimated that non-operating income related to SK Hynix's Kioxia investment could reach 41.6 trillion won in Q2. This figure combines the sale profit from Kioxia's special purpose company 1 (SPC1), valuation gains from SPC2, and other investment asset valuation gains. According to Kim's projection, the combination of operating profit and non-operating income would push pre-tax profit above 100 trillion won for the first time in the company's history. The Kioxia-related gains represent a significant one-time boost to Q2 financial results.
Analysts Adjust Forecasts Amid DRAM Shipment and Price Dynamics
Noh Geun-chang, a researcher at Hyundai Motor Securities, forecast SK Hynix's Q2 operating profit at 62.4 trillion won. Noh slightly lowered the earnings estimate due to DRAM shipment growth falling below initial expectations and the reflection of performance bonus provisions. However, Noh assessed that earnings visibility remains high because long-term contract prices are being set above current market prices and contract enforcement clauses have been strengthened. Noh diagnosed that the supply structure has changed in the current AI cycle compared to past cloud cycles, with customized memory products like HBM and SOCAMM accounting for a higher proportion. Unlike the past when memory companies contracted directly with cloud service providers (CSPs), HBM and SOCAMM are now often supplied through AI semiconductor companies such as Nvidia. Noh projected that the expansion of premium products including HBM4, HBM4E, and LPDDR6 will drive blended ASP increases.
Kim Young-gun, a researcher at Mirae Asset Securities, presented Q2 ASP growth forecasts of 32.9% for DRAM and 50.0% for NAND, but lowered these from previous estimates. Accordingly, Kim revised the Q2 operating profit estimate downward by 12% from 70.7 trillion won to 62.3 trillion won. Despite the adjustment, Kim projected that the mid- to long-term profit growth trend will continue even if price increases slow, citing robust HBM prices and tight general-purpose memory supply. Kim explained that big tech companies' order backlogs are increasing and memory supply capacity excluding HBM production remains limited.
Stock Price Targets Average 104.7% Above Current Level
SK Hynix's stock price stands at 1.816 million won. The average target price from securities firms is 3.7178 million won, approximately 104.7% higher than the current price level. The lowest target price is 1.85 million won, close to the current level, while the highest target price is 4.3 million won. Market participants view the Q2 earnings announcement as a key event where guidance on second-half memory price trends, HBM4 supply plans, and expansion of long-term supply agreements will be critical variables. Analysts suggest that if supply discipline and AI investment demand are maintained following the sharp profit increase, SK Hynix's earnings forecasts could be raised further.
FAQ
What is SK Hynix's forecast Q2 operating profit?
SK Hynix is forecast to achieve Q2 operating profit of 63.55 trillion won on revenue of 83.46 trillion won, according to a survey of 14 securities firms conducted by Yonhap Infomax on the 28th. This represents a 589.82% year-over-year increase in operating profit.
Why is SK Hynix's Q2 profit expected to surge?
The profit surge is driven by expanded sales of high-bandwidth memory (HBM) and high-value DRAM products, combined with rising prices for general-purpose DRAM and NAND flash memory. AI data center investments have increased HBM demand while constrained supply has pushed up prices for server DRAM and enterprise SSDs.
What is SK Hynix's current stock price and analyst target?
SK Hynix's current stock price is 1.816 million won. The average analyst target price is 3.7178 million won, representing approximately 104.7% upside from the current level, with targets ranging from 1.85 million won to 4.3 million won.
