SK Hynix Maintains 4.2M KRW Target Price on July 22 as Algorithm Efficiency Expected to Expand Memory Demand

SK Hynix-0.32%
According to KB Securities on July 22, SK Hynix maintained its 4.2 million KRW target price despite concerns that AI algorithm efficiency improvements could reduce memory demand. KB Securities analyst Kim Dong-won stated that efficiency gains will instead drive broader AI adoption and memory consumption. "As AI inference costs decline, enterprises will deploy more multi-agent AI tasks. Even if memory per inference drops to one-third, a 20-fold increase in usage volume would boost total memory demand sevenfold," Kim said. KB Securities expects the 2026-2027 memory cycle to show a distinct shift, with big tech and AI datacenter B2B sales potentially rising from 30% in 2017 to 70% of revenues.
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