Corporate Logo(source: skhynix.com)
On the 10th, SK Securities maintained its "OVERWEIGHT" rating on the semiconductor sector, stating that concerns surrounding the AI cycle will be resolved by the second quarter of this year. The firm named SK hynix(000660) as its top pick in the sector.
Han Dong-hee, an analyst at SK Securities, noted, "Big Tech companies’ capital expenditure(CAPEX) plans for this year are exceeding market expectations, and TSMC’s production capacity plans for Chip-on-Wafer-on-Substrate(CoWoS) have also been revised upward compared to the end of last year." He added that concerns over the U.S. government’s tightened GPU export restrictions on China and economic slowdown risks due to tariff hikes will likely dissipate in the second quarter, when high-bandwidth memory(HBM) contracts for next year are finalized.
In particular, he highlighted that as AI infrastructure expansion accelerates, NVIDIA’s Blackwell architecture gains momentum, and demand for high-end HBM from the application-specific integrated circuit(ASIC) sector rises, HBM contract completions are expected to accelerate compared to last year. This, in turn, will reaffirm strong demand for HBM.
Han also pointed out that "As the three major DRAM manufacturers’ inventories of DDR5 remain limited and AI-driven demand remains strong, the stabilization of fixed prices for commodity DRAM is likely to begin soon." He emphasized that in January 2019, the stock price rebound of Samsung Electronics(005930) and SK hynix coincided with the peak of DRAM price declines. Given that memory prices and stock prices have historically moved in tandem, the stabilization of commodity memory prices could serve as a catalyst for stock price appreciation.
He further explained, "The strongest phase for memory within the AI cycle occurs when HBM and commodity memory generate synergy. Expectations for this synergy will grow from the second quarter of this year, as the HBM upcycle is reaffirmed and inventory adjustments stabilize." As a result, SK Securities reaffirmed its "Overweight" rating on the semiconductor sector.
SK hynix remains the firm’s top pick, with Han citing the company’s increasing customer diversification beyond NVIDIA to the ASIC sector as a key driver of future growth.
*[KOSPI]SK hynix(000660) is the second-largest company on the KOSPI specializing in memory semiconductors such as DRAM, NAND flash, and MCP. The market capitalization is 104 trillion 67.7 billion won(as of March 7, 2025, closing price).
Corporate Logo(source: skhynix.com)
On the 10th, SK Securities maintained its "OVERWEIGHT" rating on the semiconductor sector, stating that concerns surrounding the AI cycle will be resolved by the second quarter of this year. The firm named SK hynix(000660) as its top pick in the sector.
Han Dong-hee, an analyst at SK Securities, noted, "Big Tech companies’ capital expenditure(CAPEX) plans for this year are exceeding market expectations, and TSMC’s production capacity plans for Chip-on-Wafer-on-Substrate(CoWoS) have also been revised upward compared to the end of last year." He added that concerns over the U.S. government’s tightened GPU export restrictions on China and economic slowdown risks due to tariff hikes will likely dissipate in the second quarter, when high-bandwidth memory(HBM) contracts for next year are finalized.
In particular, he highlighted that as AI infrastructure expansion accelerates, NVIDIA’s Blackwell architecture gains momentum, and demand for high-end HBM from the application-specific integrated circuit(ASIC) sector rises, HBM contract completions are expected to accelerate compared to last year. This, in turn, will reaffirm strong demand for HBM.
Han also pointed out that "As the three major DRAM manufacturers’ inventories of DDR5 remain limited and AI-driven demand remains strong, the stabilization of fixed prices for commodity DRAM is likely to begin soon." He emphasized that in January 2019, the stock price rebound of Samsung Electronics(005930) and SK hynix coincided with the peak of DRAM price declines. Given that memory prices and stock prices have historically moved in tandem, the stabilization of commodity memory prices could serve as a catalyst for stock price appreciation.
He further explained, "The strongest phase for memory within the AI cycle occurs when HBM and commodity memory generate synergy. Expectations for this synergy will grow from the second quarter of this year, as the HBM upcycle is reaffirmed and inventory adjustments stabilize." As a result, SK Securities reaffirmed its "Overweight" rating on the semiconductor sector.
SK hynix remains the firm’s top pick, with Han citing the company’s increasing customer diversification beyond NVIDIA to the ASIC sector as a key driver of future growth.
*[KOSPI]SK hynix(000660) is the second-largest company on the KOSPI specializing in memory semiconductors such as DRAM, NAND flash, and MCP. The market capitalization is 104 trillion 67.7 billion won(as of March 7, 2025, closing price).