KB Securities maintained a target price of 4.2 million won and a 'buy' rating on SK Hynix on July 15, forecasting that the memory supply shortage will persist at least until 2028 due to faster-than-expected investments in AI data centers.
Kim Dong-won, a researcher at KB Securities, stated, "In 2027, investment will focus on HBM, effectively limiting the expansion of new production capacity for general memory. Once long-term supply agreements (LTAs) between big tech companies and memory manufacturers are fully established, the memory supply felt by general customers will approach 'zero.'"
Regarding recent concerns over Meta's reduced AI investments, he assessed them as merely temporary noise. Meta plans to build a 7GW AI data center this year and add another 7GW next year, aiming for a total of 14GW in AI computing infrastructure. The investment in the Hyperion data center is also expected to increase from an initial $10 billion to over $50 billion in the future.
Additionally, the U.S. Federal Energy Regulatory Commission's (FERC) streamlining of power grid connection procedures is expected to significantly shorten the construction period for AI data centers, accelerating big tech's AI investment pace.
Kim noted, "Recently, SK Hynix's stock price fell 36% from its previous peak over concerns about a slowdown in AI investment. However, the long-term growth trajectory of the AI industry and the memory supply environment remain unchanged. The recent stock price adjustment is due to a decline in investor sentiment, and excessive concerns may actually present a buying opportunity."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.