SK Hynix shares are nearing 1 million won, and a possible stock split is emerging as a topic of discussion. Brokerages are raising target prices to 1.0 million to 1.37 million won and are treating the stock’s rise into the “emperor stock” category as a foregone conclusion. A stock split is being mentioned as a way to stimulate trading and secure funding. It would raise access for retail investors and recast the stock as a “national stock.” Observers say a Nvidia-style 10-for-1 split in 2024 is more likely than Samsung Electronics’ 50-for-1 split in 2018.

Mirae Asset Securities recently raised its target price for SK Hynix to 1.37 million won. That is a sharp increase of about 43 percent from the previous level in the 950,000 won range. Hyundai Motor Securities put its target at 1 million won, Kiwoom Securities at 1.05 million won, and Morgan Stanley at 1.1 million won. Analysts say the stock has entered a re-rating phase as 2026 operating profit forecasts converge at 140 to 148 trillion won. Morgan Stanley forecasts SK Hynix operating profit at 179 trillion won this year and 225 trillion won in 2027.

The upgrades are driven by earnings visibility. Kiwoom Securities said SK Hynix’s first-quarter operating profit is 28 trillion won, already above the market consensus of 22.5 trillion won. Prices for commodity DRAM and NAND are expected to surge 47 percent and 45 percent from the previous quarter, respectively. That would lift SK Hynix’s profit by as much as prices rise. Hyundai Motor Securities said, “HBM, commodity DRAM and enterprise SSD prices will all rise by around 20 percent in the second quarter as well,” and forecast first-quarter revenue of 54.5 trillion won and operating profit of 34.6 trillion won.

If the stock rises above 1 million won, discussion of a stock split is likely to begin in earnest. SK Hynix’s current par value is 5,000 won. The scenario most often mentioned in the market is a 10-for-1 split that would lower the par value to 500 won and adjust the per-share price into the 100,000 won range. That differs from Samsung Electronics’ 2018 approach, when it cut par value from 5,000 won to 100 won in a 50-for-1 split.

Nvidia shares rose 30 percent within a month after its 10-for-1 split

The main reason a 10-for-1 split is seen as likely is Nvidia’s precedent. Nvidia completed a 10-for-1 stock split in June 2024. With the share price falling from above $1,000 to the $100 range, access improved for small investors, and the stock rose 30 percent in the month after the split announcement. Bank of America said stocks that carried out splits on the New York stock market recorded an average 25 percent return over a year.

Samsung Electronics, by contrast, experienced what was dubbed a “stock split curse” after its 2018 50-for-1 split. The share price fell from the 2.5 million won range to the 50,000 won range, drawing in a large influx of retail investors, but the stock moved sideways for an extended period as it coincided with the U.S.-China trade conflict. Concerns that volatility could widen sharply if SK Hynix pursued a 50-for-1 split and pushed its share price into the 20,000 won range are helping tilt views toward a 10-for-1 scenario.

Behind the stock split discussion is also the issue of funding. SK Hynix decided in late January to cancel 12 trillion won worth of treasury shares. That amounted to 2.1 percent of shares outstanding. The move was aimed at enhancing shareholder value, but it removed collateral assets for a U.S. depositary receipt listing or for issuing exchangeable bonds. Given the precedent of SK Hynix issuing 2 trillion won of exchangeable bonds in April 2023 using treasury shares, it means a usable funding channel has been blocked. The company was able to reinvest the funds it secured at the time to take leadership in the HBM market at the outset of growth in the AI semiconductor industry.

The issue is that investment needs are surging again. SK Hynix said investment costs for a 10,000-pyeong cleanroom rose from about 7.5 trillion won at the time it announced the Yongin semiconductor cluster in 2019 to around 20 trillion won for the Cheongju M15X, which began operations last year.

SK Hynix has even issued a public explanatory statement, saying, “The question is whether we can continue without missing the investment window and regardless of economic fluctuations,” adding, “There are limits to existing funding methods.” With securing investment funds urgent from the company’s perspective, a stock split has risen as a feasible option. An industry official said, “Wouldn’t full-scale discussions take place after the share price settles around the 1 million won level?”