Following its debut on the Nasdaq last week, shares of South Korean memory maker SK Hynix could double in price over the next year, according to Barclays. The bank started coverage of the memory specialist on Tuesday with an overweight rating and a price target of $330 compared with its current price around $167. The performance driver for the stock will be the ongoing shortage of memory facing the broader technology sector, allowing price increases that will boost revenues, Barclays analysts said. “We see some upside to gross margins nearer term but the biggest delta to Bloomberg consensus is materially higher 2027 revenues driven by HBM pricing uplift and SKHY’s strong position,” Simon Coles at Barclays wrote in a Tuesday note to clients. SKHY 5D mountain SKHY 5-day. The pricing power of the memory sector has led to a huge expansion of projected profit margins in recent months, fueling a stock price boom that has only recently begun to taper. The Roundhill Memory ETF (DRAM) is down about 17% over the past month but up 116% since its inception at the beginning of April. While memory is a historically volatile sector, the AI investment boom has created a demand supercycle for the component that most analysts on Wall Street believe is far from over. Simon Coles also sees the potential in the company’s balance sheet to repurchase stock, which could further raise the stock’s price. “We estimate SKHY will hold cash equivalent to > 40% of its current market cap by year end 2027, providing ample opportunity to boost earnings growth through share buybacks,” he wrote.
Barclays believes SK Hynix’s U.S. shares can double. Here’s why
