Key HighlightsSK Hynix (SKHY) began Thursday trading at $189 following a 3% decline in the prior session.Wolfe Research elevated its price target on SKHY to $250 from $200, suggesting approximately 32% potential upside.Analyst Chris Caso maintained his Buy rating, highlighting robust memory market pricing and strong cash generation.The firm simultaneously increased its Micron (MU) price objective to $1,500 before the company’s September 30 earnings release.Consensus analyst ratings for both memory semiconductor manufacturers remain at Strong Buy.Shares of SK Hynix (SKHY) commenced Thursday’s trading session at $189 after experiencing a 3% pullback during Wednesday’s market action. The semiconductor stock recently peaked at $199.86 for the year but has struggled to break through the psychological $200 threshold.SK hynix Inc., SKHYInvestment firm Wolfe Research anticipates that resistance level will be breached soon. Equity analyst Chris Caso increased his SKHY price objective to $250 from a previous $200 target, representing roughly 32% appreciation potential from present trading levels.According to TipRanks, Caso holds the 82nd position among over 12,500 monitored analysts. His recommendations demonstrate a 63% accuracy rate with an impressive 32.70% average return.The bullish revision extended beyond SK Hynix alone. Wolfe Research simultaneously maintained its Buy recommendation on Micron (MU), establishing a $1,500 price objective for that memory chipmaker as well.Memory Sector Strength Drives Bullish OutlookCaso identified persistent pricing power throughout the memory semiconductor industry as the primary catalyst supporting the elevated price targets. His analysis projects demand will exceed available supply through a minimum of 2028.Advanced high-bandwidth memory (HBM) pricing dynamics and accelerated capacity buildouts form additional pillars of the investment thesis. Caso anticipates additional HBM price appreciation during 2027, building upon the upward momentum that began in late 2025.The analyst also tackled investor concerns regarding potential “de-speccing” trends in memory products. Per Caso’s assessment, specification reductions reflect constrained supply availability rather than diminishing HBM value proposition.Extended contract agreements establish fixed pricing for portions of bit shipment volumes at both manufacturers. However, Caso identifies near-term upside opportunities stemming from sales activity occurring outside these locked-in arrangements.Capital Returns and Free Cash Flow GenerationThe analyst emphasized free cash flow generation as a critical component of the investment narrative. His projections indicate SK Hynix and Micron will produce sufficient cash during 2026 and 2027 to facilitate share repurchases equivalent to 32% and 25% of their respective valuations.This buyback activity could amplify 2027 earnings per share by as much as 47% for SK Hynix and 34% for Micron, based on Wolfe Research’s models. Should favorable market conditions persist through 2028, aggregate repurchase programs could surpass 50% of both companies’ market capitalizations.“While much of the positive outlook is already known, we think the cash flow will be difficult to ignore,” Caso wrote in a note to investors.Currency headwinds entered Caso’s analysis as well. The Korean won’s 14% appreciation versus the U.S. dollar throughout the quarter may pressure SK Hynix’s operating margin performance, he observed.Micron is scheduled to announce fiscal fourth-quarter results on September 30. Analyst consensus anticipates earnings per share of $31.49, representing substantial growth from $3.03 in the year-ago period, while revenue is forecast to surge approximately 350% to $50.91 billion.Wall Street maintains a Strong Buy consensus on both stocks. TipRanks data shows the average price target implies higher upside for Micron than for SK Hynix.Through the current year, Micron shares have advanced approximately 276%. SK Hynix’s U.S.-traded American depositary receipts have gained roughly 13% during the identical timeframe.The post SK Hynix (SKHY) Stock: Wolfe Research Analyst Boosts Target to $250, Sees Major Upside appeared first on Blockonomi.