Reports emerged on July 27 that SK Hynix and Nvidia formalized one of the largest semiconductor partnerships in history, a deal valued at over $500 billion focused on co-developing AI data centers and next-generation memory chips. For shareholders of HYNSE-USD.LU, the announcement lands at a moment when the company is already riding record demand — raising the question of how much upside is already baked into the price. SK Hynix Just Became Nvidia's $500 Billion Best Friend — Is the Market Giving It Enough Credit?
Shares of SK Hynix traded under pressure even as the Korean chipmaker unveiled a partnership with Nvidia worth more than $500 billion, a deal that binds the two companies together in building AI data centers and next-generation memory for years to come. On Nasdaq, SKHY last changed hands at $143.02, well within a 52-week range of $139 to $195 — suggesting the market is still digesting what may be the most consequential supply agreement in semiconductor history.
The Deal Makes SK Hynix the Backbone of Nvidia's Next AI Platform The partnership centers on co-developing advanced memory chips — specifically the kind of high-bandwidth memory (HBM) that acts as the brain's short-term storage inside AI supercomputers. Nvidia is expected to allocate roughly 70% of its next-generation AI chip memory demand to SK Hynix , with those chips slated for integration into Nvidia's upcoming Rubin GPU platform . That kind of lock-in turns SK Hynix from a commodity supplier into an irreplaceable partner.
A Single Quarter Could Eclipse an Entire Year's Profit The timing is remarkable. SK Hynix is expected to post an all-time high operating profit of 64.1 trillion won (~$43.7 billion) for Q2 2026 alone, on sales of 84.1 trillion won . That single quarter would surpass the company's entire 2025 annual operating profit of 47.2 trillion won . Operating margins are forecast at 75–77% — meaning for roughly every dollar of chips sold, about 76 cents drops to the bottom line. Earnings land July 29.
Dominance Comes With a Target on Its Back
SK Hynix leads the HBM market at roughly 50–55% share, followed by Samsung at 35–40% and Micron at 5–10% . But Samsung's position is strengthening as its chips gain approval from major customers and competitive pressure intensifies in the shift to next-generation products . Meanwhile, the stock has already endured a 30% correction amid valuation concerns and high premiums on its U.S.-listed shares .
The Disconnect Between Profits and Price Tells a Story
Analysts' average 12-month price target sits at ₩3.41 million — roughly 91% above the current price — with 36 out of 36 analysts rating it a buy . Yet SK Hynix's own CEO has warned that memory shortages will persist into the 2030s, calling "2027 the worst year for memory" — meaning supply constraints could cap how fast the company converts this deal into shipped product. For shareholders, the $500 billion partnership confirms SK Hynix's strategic centrality in the AI era. The open question: can manufacturing keep pace with ambition?