SK Hynix’s $750 Billion Supply Blitz Puts a Floor Under the Stock Ahead of Earnings
Published on 07/27/2026 at 19:52 | Redaktion boerse-global.de
The memory chip maker’s shares climbed 3.24 percent to 1,816,000 won in Seoul on Monday, snapping a stretch of weakness that had left the stock trading 39.2 percent below its June peak of 2,987,000 won. The catalyst was a cascade of long-term supply agreements with Nvidia and Microsoft that, together, amount to roughly $750 billion in committed chip deliveries — a figure that dwarfs even the $500 billion infrastructure pact between SK Group and Nvidia announced on July 25.
Investors are now looking past the recent correction and toward Wednesday, when SK Hynix reports second-quarter results. Analysts at 14 brokerages, polled by Yonhap Infomax, forecast record revenue of 84.1 trillion won for the April-June period and operating profit of roughly 64.1 trillion won. That quarterly profit alone would exceed the company’s entire 2025 operating income of 47.2 trillion won, underscoring how dramatically the AI boom has reshaped the chipmaker’s earnings power. For the first half of 2026, the consensus calls for operating profit above 100 trillion won — more than double the full-year 2025 figure.
The profit surge reflects SK Hynix’s dominant position in high-bandwidth memory, where it commands a 58 percent market share, according to Counterpoint. Standard DRAM prices rose 58 to 63 percent quarter-on-quarter in Q2 as the company shifted capacity toward AI-grade chips. Morgan Stanley expects HBM supply to remain tight, with memory prices climbing another 25 percent in the third quarter, though the Bank for International Settlements has warned of overheating in the sector.
Long-term contracts replace spot-market volatility
Should investors sell immediately? Or is it worth buying SK Hynix?
The Monday rally was powered by news that SK Hynix has locked in multi-year supply agreements worth a combined $750 billion with US technology companies. The largest component is a five-year deal to supply HBM4 memory to Nvidia, alongside a separate partnership with Microsoft to equip AI servers with memory chips. These agreements mark a structural shift from the traditional one-year contracts that had left chipmakers exposed to sudden demand swings. SK Group also signed a memorandum of understanding with Nvidia for a $500 billion AI infrastructure project in South Korea, under which SK Telecom will build a gigawatt-scale AI cloud using Nvidia’s Vera Rubin computing systems — all powered exclusively by SK Hynix’s HBM memory. The first of these “AI factories” is slated to begin operations in 2027.
Notably, the contracts remain non-binding memoranda of understanding rather than firm purchase orders, a detail that tempers some of the euphoria. Still, the sheer scale of the commitments — combined with a separate $200 billion agreement between Samsung Electronics and Broadcom — has injected a new sense of certainty into a sector that has historically been defined by boom-bust cycles.
Nasdaq listing creates a two-tier market
The stock’s recent volatility traces back to July 10, when SK Hynix completed the largest-ever US listing by a foreign company, raising $26.5 billion through the sale of 177.9 million American Depositary Receipts. The proceeds are earmarked for expanding HBM4 manufacturing capacity. But the listing has created an unusual pricing dynamic: Korean investors are paying a hefty premium for ADRs relative to Seoul-listed shares, with the spread fluctuating between 16 and 51 percent. On Monday morning, the ADR premium stood at 32.8 percent, with a pre-market price of $164.21. By comparison, TSMC’s average ADR premium over five years was just 12.6 percent, according to Shinhan analyst Lee Jeong-bin.
Starting Wednesday, ADRs and Seoul shares will become mutually convertible, though initially only 2.5 percent of outstanding shares will be eligible. That mechanism should eventually narrow the gap, but it also introduces a new layer of complexity for arbitrageurs.
Wall Street remains bullish despite the pullback
SK Hynix at a turning point? This analysis reveals what investors need to know now.
Barclays has initiated coverage with an overweight rating and a $330 price target, in line with the consensus “Moderate Buy” recommendation from analysts covering the stock. The ADR target implies roughly 100 percent upside from current levels, reflecting confidence that SK Hynix’s role as Nvidia’s primary HBM4 supplier will translate into sustained earnings growth.
The stock has corrected 32.1 percent over the past 30 days, but the relative strength index of 42.1 suggests it is no longer overbought. Market participants view the post-Nasdaq-listing selloff as a stabilization process rather than a structural reversal, with institutional capital gradually rotating back into the AI memory theme.
Wednesday’s earnings call will focus on management’s guidance for HBM4 production timelines and the impact of the South Korean government’s newly announced $950 billion national AI investment plan. With SK Hynix now embedded in Nvidia’s Vera Rubin architecture, Vera CPU and Jetson Thor platforms, the company has positioned itself as the indispensable supplier for the next phase of the AI supercycle — provided it can execute on its ambitious production targets.
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