SK Hynix Rewrites the Memory Playbook: AI Infrastructure Status Fuels Record Targets and a Wall Street Debut

SK Hynix revalued as critical AI infrastructure, posts record profits, begins HBM4 production, and plans ADR listing with share buyback to offset dilution.

South Korea’s benchmark Kospi index notched its biggest single-day point gain in history last Thursday, surging 8.42% to 7,815.59. That broad rally, fueled by falling US yields, lower oil prices, and strong Nvidia earnings, carried SK Hynix within a hair’s breadth of its record high. But the real story lies deeper: the memory-chip giant is no longer being judged by the old cyclical yardstick. Nomura Securities has doubled its price target to a record 4 million won, and rivals Shinhan Securities and Korea Investment & Securities have followed with targets of 3.8 million won, arguing that DRAM and NAND are now viewed as critical AI infrastructure rather than commoditized components subject to boom-bust spot pricing.

The shift from volatile spot markets to long-term supply agreements is transforming how analysts value the company. SK Hynix closed Friday at 1.941 million won, up 6.71% on the week and 186.71% year-to-date. With the 52-week high at 1.976 million won, the stock sits just 1.77% below that mark, and the relative strength index of 68.9 still leaves room for further gains without signaling an overbought condition.

The financials underpinning the rally are extraordinary, spanning two reporting periods. For the full year 2025, SK Hynix booked a net profit of 42.95 trillion won on revenue of 97.15 trillion won, with fourth-quarter operating profit alone reaching 19.17 trillion won on a margin of 58%. The momentum accelerated into 2026: first-quarter revenue hit 52.5763 trillion won, operating profit soared to 37.6103 trillion won, and margins jumped to an eye-watering 72% operationally and 77% net. The balance sheet reflects that cash machine: liquid assets climbed to 54.3 trillion won, financial debt fell to 19.3 trillion won, and net cash stood at 35 trillion won.

That financial firepower is being deployed on multiple fronts. The company has begun mass production of HBM4, the next generation of high-bandwidth memory, with first deliveries expected in the first quarter of 2026. Meanwhile, SK Hynix is preparing to list American Depositary Receipts on a US exchange, issuing 2.4% new shares to raise roughly 15 trillion won. In a move designed to neutralize dilution, the entire proceeds are earmarked for share buybacks and cancellations. The plan also respects the Korean Fair Trade Act: majority shareholder SK Square, which controls 20.5%, will remain above the 20% threshold. The buyback effort follows a 12.24 trillion won share cancellation carried out in February 2026.

For now, the technical picture suggests the rally may have more room to run. The stock has gained 58.71% in the past month alone, but its 30-day annualized volatility of 75.52% underscores the frothy environment. On the chart, the 1.880 million won level offers near-term support, while a clean break above resistance around 1.970 million won could quickly retest the record high. The next major catalyst will be the initial HBM4 shipments, but the broader tailwinds remain strong: South Korea’s exports rose 52.6% in the first 20 days of May compared with a year earlier, and semiconductor exports surged 202%.

SK Hynix now commands a market capitalization of 138.3 trillion won — 9.47 times its value a year ago and 79% of Samsung Electronics’ market cap, compared with Samsung’s more modest 5.31-times gain over the same period. The company’s valuation debate has shifted from whether memory stocks deserve a premium to how much of the AI investment cycle they can capture. If the transition to long-term contracts and the HBM4 ramp deliver as promised, the current price targets may not be the last to be raised.