SK Square surged more than 7% during trading, surpassing the KRW 2.11 million mark, driven by expectations of a semiconductor industry recovery and target price upgrades from securities firms.

Surpasses KRW 2.11 Million Intraday...V-Shaped Rebound from KRW 1.66 Million Level

On the morning of the 23rd, SK Square traded at around KRW 2.11 million intraday, showing an upward trend of more than 7% compared to the previous trading day. After recently falling to the KRW 1.66 million level, the stock has staged a sharp rebound, drawing concentrated market attention.

NH Investment Securities Raises Target Price to KRW 2.7 Million—"Room for Further Upside"

In a report on the 22nd, NH Investment Securities maintained its "Buy" rating on SK Square while raising its target price to KRW 2.7 million. The decision was based on the assessment that there is still room for further upside compared to the current share price.

The securities firm highlighted the potential for an increase in the enterprise value of SK Hynix, which accounts for the largest portion of SK Square's net asset value (NAV). The analysis suggests that growing expectations for increased demand for high bandwidth memory (HBM) driven by the proliferation of artificial intelligence (AI) and an improvement in the memory semiconductor cycle are also improving SK Hynix's earnings outlook.

Rising Value of SK Hynix = Revaluation of SK Square

SK Square is an investment holding company that holds a stake in SK Hynix, operating under a structure where an increase in the subsidiary's value directly leads to an expansion of net asset value and a revaluation of enterprise value. Accordingly, securities firms have reflected the upward revision in SK Hynix's target price and similarly raised the fair value of SK Square.

The market projects that if the trend of expanding AI server investment and a recovery in the global semiconductor cycle continues, SK Square's enterprise value could be further highlighted. In particular, whether the holding company discount narrows alongside the rise in net asset value is cited as a key variable for future share price movements.

Risk Factors

However, concerns over a global economic slowdown, changes in semiconductor market supply and demand dynamics, and fluctuations in tech stock investment sentiment are identified as factors that could increase future share price volatility. Investors are closely watching how SK Hynix's performance and memory semiconductor market trends will impact the valuation of SK Square.

[※ This article was written with AI assistance based on publicly available data and market information. The content included in this article is for reference only in making investment decisions and does not constitute a recommendation to buy or sell any specific stock or guarantee any returns. The stock market may fluctuate due to various variables, so investment decisions should be made at the investor's own discretion and responsibility. As there may be some misinterpretation or errors of information during the AI analysis process, please be sure to verify regulatory filings and corporate announcements before making any final investment decisions.]