SK hynix CEO Kwak Noh-jung outlined the company's ambitious goal of reaching a stock price of 280,000 won (about $210) within the next three years during a recent in-house meeting.

The projected value represents nearly a twofold increase from the current stock price and is seen as a strong statement of confidence in the future prospects of the semiconductor market.

This announcement was delivered directly by CEO Kwak to executives and staff members at the communication event conducted on Tuesday.

The mentioned target stock price of 280,000 won is twice the closing price on that day, which stood at 153,800 won.

Notably, SK hynix's stock has experienced significant growth recently, largely attributed to the positive outcomes resulting from its partnership with the American semiconductor giant, Nvidia. The stock price surged to 166,900 won last Friday, marking its highest level in the past 52 weeks.

Kwak has been consistently painting a bright future for the company. As early as January, he expressed the company's ambition to double its market capitalization from 100 trillion won to 200 trillion won within three years by optimizing investment efficiency and ensuring financial stability. At the time of his announcement, the market capitalization was approximately 112 trillion won.

The CEO's optimistic outlook is fueled by SK hynix's strategic collaboration with Nvidia, known for its leadership in artificial intelligence semiconductors.

Following the successful development of the world's first HBM3E (High Bandwidth Memory) in August, SK hynix conducted performance tests by providing samples to Nvidia. With the upcoming launch of Nvidia's new AI chip model, "H200," SK hynix is poised to be a crucial supplier of HBM3E, further boosting its market position.

Leveraging the positive impact of its association with Nvidia, SK hynix, which recorded a 7.73 trillion won deficit last year, is anticipated to witness a significant turnaround in its financial performance this year.

Market analysts project SK Hynix to achieve an annual operating profit exceeding 10 trillion won, a milestone not reached since 2021.

Despite these promising developments, industry experts caution that it may be premature to assume a secure position for SK hynix, especially as the company faces fierce competition in the HBM market.

By Kim Jun-hong (hongie@heraldcorp.com)