SK Hynix Price Target Raised to $250 as Wolfe Research Bets on Memory Shortage Through 2028

Wolfe Research raised its SK Hynix target to $250 from $200, citing memory demand outpacing supply through 2028 after record Q2 revenue.

Wolfe Research has turned more bullish on South Korean memory chipmaker SK Hynix, lifting its price target on the stock from $200 to $250 while reaffirming an "Outperform" rating. Analyst Chris Caso made the revision after refreshing his valuation models, pointing to sustained price improvements across the memory chip sector as the core justification.

The upgrade rests on a straightforward supply-and-demand thesis: Caso expects demand for memory products to outstrip global supply at least through 2028. An unrelenting buildout of artificial intelligence infrastructure has kept the market tight, handing manufacturers meaningful pricing power in the process.

Those dynamics are already visible in the company's results. SK Hynix booked record revenue of KRW 79.3 trillion in the second quarter of 2026, alongside an operating profit of KRW 60.5 trillion. Sharply higher DRAM and NAND prices, driven by the ongoing AI expansion, did most of the heavy lifting behind that performance.

Labor Deal Removes an Overhang

On the operational front, SK Hynix put weeks of uncertainty to rest. On September 16, the company's South Korean union approved a tentative agreement with management covering employee compensation. The revised terms shift the mix of profit-sharing bonuses: the cash portion rises to 50% from 40%, while the share paid out in company stock falls to 50% from 60%.

The settlement eliminates a distraction that had lingered over the workforce, though it was not the only financial matter demanding management's attention.

Power Grid Proposal Turned Down

SK Hynix and Samsung Electronics jointly rejected a request from state utility Korea Electric Power Corp on September 14, according to a parliamentary document. KEPCO had sought an advance payment of KRW 25 trillion to secure electricity supply for planned semiconductor mega-clusters.

By pushing back on the multibillion-dollar demand, SK Hynix shields its liquidity from additional upfront costs — a move that reinforces expectations for robust cash generation, which Wolfe Research flagged as a key pillar of its investment case.

US Manufacturing Options Under Review

Management is simultaneously weighing where to build next. Roughly a week ago, talks with Intel surfaced regarding potential memory chip production on American soil, with the chipmaker's Ohio site mentioned as a possible base. Media reports suggest several structures are on the table, including a joint venture. No decision has been reached, and SK Hynix subsequently stated that nothing has been finalized with any named partner.

Japan is also in the mix. In a disclosure to the Korea Exchange dated September 18, SK Hynix said it is evaluating various capacity expansion measures but had not yet decided on possible semiconductor production in Japan. The company pledged to disclose specifics once settled, and no later than within three months.

The picture is similarly open-ended at subsidiary Solidigm. More than a month ago, the unit said it was reviewing steps to strengthen its competitiveness. Reuters reported that Solidigm is considering a NAND flash memory chip plant in the United States, though no concrete plans have been confirmed.

Next Data Point Lands October 27

Investors will get a clearer read on margins and the broader trajectory when SK Hynix reports quarterly results on October 27, 2026. The question market watchers will be asking is whether the supply squeeze analysts anticipate continues to flow through to the company's operating metrics.