SK Hynix’s Wild Week: A $500 Billion Nvidia Deal Meets a 30% Rout
Published on 07/30/2026 at 06:41 | Redaktion boerse-global.de
The whiplash in SK Hynix shares over the past week has been nothing short of extraordinary. The Korean memory-chip giant saw its stock tumble more than 30% in seven days, erasing tens of billions in market value, even as the company posted record-breaking quarterly profits and unveiled a blockbuster partnership with Nvidia valued at over $500 billion.
By Thursday’s close in Seoul, SK Hynix had fallen another 5% to 1,331,000 won, extending a sell-off that began after the company’s second-quarter results landed below consensus estimates. The 14-day relative strength index has slid to 32.0, a level that typically signals oversold conditions and suggests the selling may have overshot on a purely technical basis.
Record Profits, but Not Enough
The numbers themselves were staggering. For the April-to-June period, SK Hynix reported revenue of 79.32 trillion won, up 256.8% year-over-year. Operating profit surged 557.2% to 60.54 trillion won, delivering an operating margin of 76% — a figure the company notes surpasses both Nvidia and TSMC. Net income hit 93.92 trillion won, boosted by a gain from the sale of its stake in Kioxia.
Yet the market had priced in even more. Analysts were looking for revenue around 84 trillion won and operating profit near 64 trillion won. The miss triggered an immediate after-hours plunge of more than 9%, though the stock quickly recovered to close the extended session up over 2% as investors digested the management’s bullish outlook.
Should investors sell immediately? Or is it worth buying SK Hynix?
A $500 Billion Bet on AI Infrastructure
The turnaround in sentiment had a concrete catalyst. During the earnings call, SK Hynix management pushed back hard against growing skepticism about the durability of the AI investment cycle. The company confirmed it would set capital expenditures for 2026 at the high end of its 40-to-50-trillion-won target range, signaling it plans to accelerate spending on high-bandwidth memory rather than pull back.
Even more significant was the announcement of a sweeping partnership between SK Group and Nvidia. The two companies have signed agreements to jointly build AI infrastructure worth more than $500 billion, spanning everything from AI factories to next-generation memory chip supply. For SK Hynix, the deal provides long-term volume guarantees for its HBM products; for Nvidia, it locks in a stable supply of the advanced memory chips critical to its AI accelerators.
Analysts Cut Targets but Stay Bullish
The stock’s collapse has forced analysts to slash their price targets, though most have maintained buy ratings. Mirae Asset Securities cut its target by 33%, from 4.2 million won to 2.8 million won, while keeping a “Buy” recommendation. Analyst Kim Younggun cited falling NAND flash prices and concerns over Chinese lithography restrictions, but noted the stock now trades at a target price-to-earnings ratio of just 4.6. The firm expects SK Hynix to generate cumulative free cash flow of 440 trillion won through 2027 and hold net cash of 420 trillion won.
Kiwoom Securities lowered its target from 2.6 million won to 2.2 million won but upgraded the stock to “Buy,” forecasting third-quarter revenue of 98.9 trillion won and operating profit of 78.5 trillion won — sequential gains of 25% and 30%, respectively, driven by the ramp-up of HBM4 production. Barclays trimmed its price target on the U.S.-listed shares from $330 to $300 but kept an “Overweight” rating.
The Broader Context: A 47% Peak-to-Trough Rout
The recent volatility comes after an extraordinary run-up and subsequent collapse. According to Bloomberg data, SK Hynix shares had fallen 47% from their June record high before this week’s additional losses, wiping out nearly $600 billion in market capitalization — a decline comparable in scale to SpaceX’s entire valuation. The stock now trades 52% below its 52-week high of 2,987,000 won set on June 25, though it remains 21.75% above its 200-day moving average, underscoring how quickly investor positioning has shifted.
SK Hynix at a turning point? This analysis reveals what investors need to know now.
The sell-off has not been isolated to SK Hynix. South Korea’s Kospi index triggered trading halts for the second consecutive session on Wednesday, while concerns about overheated AI spending at tech giants like Meta and Alphabet have dragged down the entire semiconductor complex, including Nvidia, Micron, and AMD. Adding to the pressure, the emergence of Chinese memory maker CXMT in Shanghai has stoked fears of oversupply in the NAND market.
HBM4 and the Long Game
Despite the near-term turbulence, SK Hynix is pressing ahead with its expansion plans. Mass production of HBM4 memory has begun, and first samples of HBM4E have already been delivered to customers. The company has signed long-term supply agreements with more than ten major clients, each spanning roughly five years and including prepayments to secure allocation.
The central question hanging over the stock is whether the hundreds of billions of dollars that tech giants are pouring into AI infrastructure will translate into sustained demand for memory chips — or whether the market has already priced in peak AI enthusiasm. For now, management is betting big that the answer is the former, with a record investment budget and a $500 billion Nvidia partnership as its strongest arguments.
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SK Hynix Stock: New Analysis - 30 July
Fresh SK Hynix information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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