Goldman Sachs Backs SK Hynix with Bullish Price Target

Goldman Sachs has reaffirmed its buy rating on SK Hynix, setting a twelve-month price target of 3,500,000 KRW. This vote of confidence from the investment bank is largely based on multi-year supply contracts that provide clear visibility into the chipmaker's future earnings.

The investment bank projects earnings per share of 399,504 KRW for fiscal 2026, rising to 491,918 KRW in 2027 and reaching 560,997 KRW by 2028. This ambitious earnings trajectory is underpinned by a structural shift in the global semiconductor industry.

High-performance memory chips have become essential components for modern data centers and AI servers, leading market watchers to believe that the current upcycle will outlast previous ones. JPMorgan shares this view, initiating coverage with an overweight rating and forecasting average annual earnings growth of 34% over the next two years.

However, concerns have surfaced about a temporary slowdown in demand for standard memory products and expanding production capacity across the industry. One research firm trimmed its operating profit forecast for the fourth quarter by 4% on September 15.