Citi Expects SK hynix Q3 Operating Profit to Surge 614% YoY and Sales to Jump 314% YoY, Maintains "Buy"

Deep News11:00

Citi has issued a research report predicting that, driven strongly by the AI boom, SK hynix (US: SKHY) will deliver exceptionally strong results in the third quarter of 2026, with operating profit expected to reach 81.3 trillion Korean won, up 34% quarter-on-quarter, a massive 614% surge year-on-year, and roughly 8% above market expectations. Sales for the period are also projected to hit 101.2 trillion Korean won, rising 28% quarter-on-quarter and 314% year-on-year. The company is scheduled to release its third-quarter results on October 29.

Citi believes that an explosion in AI inference demand is driving strong memory requirements for KV-cache workloads, and it expects DRAM and NAND average selling prices to rise 28% and 24% quarter-on-quarter, respectively, in the third quarter. Meanwhile, as continual learning technology gains traction, enterprise SSD demand is expected to jump 52.9% year-on-year in 2027.

Citi notes that SK hynix, with its high-density QLC NAND and upgraded TLC NAND, will fully benefit from AI data center storage expansion. Given that memory supply tightness may persist through 2028, Citi maintains its target price of 3 million Korean won and its "Buy" rating, pointing out that the current price reflects only 2.7 times forward earnings and 1.4 times book value, failing to capture the upside from an extended upcycle.

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Sales for the period are also projected to hit 101.2 trillion Korean won, rising 28% quarter-on-quarter and 314% year-on-year. The company is scheduled to release its third-quarter results on October 29.<br><br>Citi believes that an explosion in AI inference demand is driving strong memory requirements for KV-cache workloads, and it expects DRAM and NAND average selling prices to rise 28% and 24% quarter-on-quarter, respectively, in the third quarter. Meanwhile, as continual learning technology gains traction, enterprise SSD demand is expected to jump 52.9% year-on-year in 2027.<br><br>Citi notes that <b>SK hynix</b>, with its high-density QLC NAND and upgraded TLC NAND, will fully benefit from AI data center storage expansion. Given that memory supply tightness may persist through 2028, Citi maintains its target price of 3 million Korean won and its \"Buy\" rating, pointing out that the current price reflects only 2.7 times forward earnings and 1.4 times book value, failing to capture the upside from an extended upcycle.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"","article_id":"1118595409","we_media_id":"1039043262","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1118595409","pubTimestamp":1792638040,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Deep News","introduction":"Global Stock Market Deep Analysis","home_visible":1,"id":"1039043262","head_image":"https://community-static.tradeup.com/news/8296859682db4b478146245e72de1922"},"summary":"Citi has issued a research report predicting that, driven strongly by the AI boom, SK hynix (US: SKHY) will deliver exceptionally strong results in the third quarter of 2026, with operating profit...","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"花旗预计SK海力士第三季度营业利润同比飙升614%，销售额同比飙升314%，维持“买入”评级","themeId":null,"isJumpTheme":false,"ttsUrl":"https://static.tigerbbs.com/e3f76878ca5dc54f8c395527257a971b","symbols_score_info":{"SKHYV":1,"03516":1,"SKHL":1,"SKHQ":1,"SKHU":1,"SKHY":1,"SKHX":1,"SKHZ":1,"SKUU":1,"IYF":1,"RAM":1,"FTXO":1,"SKDD":1,"SKHN":1,"SKHA":1,"TFNS":1,"EDZ":1,"SK":1,"07709":1,"C":1,"DRAL":1,"RAMZ":1,"EEMO":1,"HYNX":1},"content_text":"Citi has issued a research report predicting that, driven strongly by the AI boom, SK hynix (US: SKHY) will deliver exceptionally strong results in the third quarter of 2026, with operating profit expected to reach 81.3 trillion Korean won, up 34% quarter-on-quarter, a massive 614% surge year-on-year, and roughly 8% above market expectations. 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