SK Hynix target cuts widen after earnings miss, but HBM outlook stays supportive

SK Hynix's record second-quarter results triggered broad target-price reductions from South Korean brokerages and Barclays after earnings fell short of high market expectations, but most analysts said the revisions reflect lower near-term memory pricing assumptions and valuation resets rather than a breakdown in the AI-memory cycle. Barclays cut its ADR target to $300 from $330 while keeping an Overweight rating, and domestic firms including Shinhan, Kiwoom, NH, Daishin, Samsung and Mirae Asset lowered local targets, though Korea Investment & Securities raised its target to 4.7 million won and several firms kept 4 million won targets unchanged. Analysts broadly pointed to weaker-than-expected second-quarter commodity DRAM and NAND pricing, deferred high-value DRAM shipments, and timing assumptions around HBM4 and long-term agreements as reasons for trimming estimates. Even so, many maintained bullish medium-term views, citing tight supply, SK Hynix's leadership in high-bandwidth memory, expected HBM4 shipment normalization and continued AI data-center demand. Barclays said HBM pricing should remain a tailwind through 2027 and that the stock already reflects a pessimistic outlook for future ASPs, while Kiwoom projected a third-quarter rebound with revenue of 98.9 trillion won and operating profit of 78.5 trillion won. The post-earnings selloff also fed through to Hyperliquid perpetual futures tied to SK Hynix, where the drop triggered about $57 million of liquidations. Analysts and management nonetheless continued to argue that low inventories, multi-year supply agreements with major customers including Nvidia, and the possibility of buybacks or other shareholder-return measures support the longer-term case.