BNK Investment & Securities lowered its third and fourth-quarter operating profit forecasts for SK hynix. It cited a persistent slowdown in memory chip demand and intensifying competition.
The firm reduced its Q3 operating profit estimate for SK hynix by 6% to 72.1 trillion won. It cut the Q4 estimate by 4% to 76.4 trillion won. The revision also reflects a strengthening South Korean won's impact on dollar-denominated revenue.
The brokerage cited several factors for its cautious stance. These included weakening demand elasticity for memory chips in servers as costs rise.
BNK also noted that major AI companies are shifting focus from performance to cost-effectiveness. This could reduce semiconductor purchasing.
The firm maintained a "Hold" rating on SK hynix stock. It simultaneously lowered its earnings estimates and target price for competitor Samsung Electronics for similar reasons.