Citi Reiterates SK Hynix Buy at 3.1 Million Won as Memory Stocks Drop Over 20%
Updated
Updated · Yahoo Finance · Aug 6
Citi Reiterates SK Hynix Buy at 3.1 Million Won as Memory Stocks Drop Over 20%
2 articles · Updated · Yahoo Finance · Aug 6
Summary
Citi said the recent selloff in memory shares is a buying opportunity, reiterating its Buy on SK Hynix and keeping a 3,100,000 won price target.
More than 20% declines in Micron, Samsung Electronics and SK Hynix have followed valuation and AI-capex worries, but Citi argues the AI-driven memory upcycle is still in its early stages.
Three- to five-year customer contracts and a persistent HBM shortage underpin that view, with Citi expecting AI chipmakers to use more GPUs with less HBM per unit.
HBM capacity per AI system would still jump 434% to 110.6 terabytes from 20.7 terabytes as GPU counts rise to 576 from 72, supporting demand for both DRAM and NAND.
SK Hynix's review of shareholder returns also adds support; Citi raised its 2026 and 2027 operating profit forecasts by 4% and 3% and expects a payout plan before third-quarter earnings.