SK Hynix Charts New Packaging Path with Intel as Analysts See 2.8 Million Won Upside

SK Hynix leverages HBM dominance, explores Intel's EMIB packaging as alternative to TSMC, as analysts raise targets amid AI-driven memory demand and potential undersupply.

SK Hynix is navigating the high-stakes world of AI memory with a two-pronged strategy: doubling down on its own expansion while exploring a potentially game-changing partnership with Intel's foundry business. The move comes as analysts scramble to revise their price targets amid an unprecedented HBM boom that shows no signs of cooling.

KB Securities has become the latest house to lift its sights, raising the target to 2.8 million won — a 40 percent jump. Analyst Kim Dong-won points to the explosive combination of sharply rising memory prices and unrelenting demand for High-Bandwidth Memory in AI servers. The brokerage now expects operating profit of 270 trillion won in 2026 and 418 trillion won in 2027. LS Securities has followed with a more conservative 2.1 million won target.

The catalyst for the latest wave of enthusiasm is an unconfirmed report that SK Hynix is exploring Intel's EMIB 2.5D packaging technology as an alternative to TSMC's dominant CoWoS process. TSMC's capacity has become the industry's bottleneck, with Goldman Sachs recently warning that 2026 could bring the worst DRAM undersupply in 15 years. Intel's approach is considered cheaper and thermally less complex, offering a potential lifeline for a memory maker that already commands 57 percent of the HBM market.

Neither SK Hynix nor Intel has commented on the speculation, but analysts at Deutsche Bank noted Tuesday that Intel Foundry has been in talks with several big tech names, including the Korean chipmaker and Apple. For Intel, landing such an order would be a credibility test for its foundry ambitions. For SK Hynix, it would be insurance against an over-reliance on a single packaging partner.

The timing aligns with the broader reshaping of the memory market. The traditional DRAM cycle has been overtaken by massive capital spending on AI infrastructure. SK Group Chairman Chey Tae-won has warned that wafer shortages could persist until 2030. Big tech clients, desperate to secure supply, are now willing to co-finance dedicated production lines and even help purchase EUV lithography equipment.

SK Hynix is also strengthening its U.S. footprint. The company has acquired a property in San Jose for roughly $49.5 million, which will serve as a base for manufacturing and R&D in the heart of Silicon Valley. CEO Kwak Noh-Jung attended the Microsoft CEO Summit in Redmond this week, meeting Satya Nadella and Bill Gates. SK Hynix is the sole supplier of HBM3E for Microsoft's Maia 200 AI chip.

The financials underscore the scale of the opportunity. In the first quarter of 2026, SK Hynix posted revenue of 52.6 trillion won and operating profit of 37.6 trillion won. Yet the stock is not immune to volatility. On Tuesday, shares slipped 2.39 percent to close at 1,835,000 won, pressured by political debates in South Korea over potential "national dividends" from AI windfalls.

The long-term trajectory, however, remains sharply upward. Year-to-date, the stock has gained 182.27 percent, with an 83.75 percent surge in the past 30 days alone. On Wednesday, it hit a new annual high of 1,911,000 won. The RSI of 68.9 suggests technical conditions are stretched but not extreme. KB Securities expects the HBM crunch to last at least until 2027, meaning SK Hynix’s biggest challenge is not demand — it is finding enough reliable routes through the packaging bottleneck.