Shares surged as Nvidia's blowout earnings and a new multiyear partnership thrust SK Hynix into the spotlight as the chipmaker's go-to supplier of advanced AI memory, raising fresh questions about how much of the good news is already baked into the stock's $165.09 price tag. SK Hynix Rides Nvidia's AI Boom With a Landmark Memory Deal — But Can the Stock Keep Climbing at This Pace?
Shares surged 4.5% to $165.09 after Nvidia posted quarterly revenue of $96.2 billion — up 106% from $46.7 billion a year ago — and reaffirmed a multiyear partnership making SK Hynix its primary supplier of the specialized memory chips that AI systems cannot run without. For investors in the Korean memory giant, the question is whether a deal of this scale transforms SK Hynix's earnings power or simply confirms what the market already priced in.
Nvidia's Blowout Quarter Proves AI Spending Isn't Slowing Down
Nvidia reported earnings of $2.22 per share, up 111.4% year over year , and guided for third-quarter revenue of $108 billion . That matters directly for SK Hynix because every AI chip Nvidia ships requires high-bandwidth memory (HBM) — stacked memory chips that move data far faster than standard alternatives. One of the biggest bottlenecks in the AI infrastructure build-out right now is memory, especially HBM. More Nvidia revenue means more orders flowing to SK Hynix's factories.
The Biggest Memory Deal in History Locks In Years of Demand
SK Group and Nvidia announced a $500-billion-plus comprehensive partnership covering everything from securing a stable supply of next-generation AI memory to co-developing and optimizing future HBM solutions . South Korea's presidential adviser confirmed SK Hynix has committed to $750 billion in memory supply partnerships with U.S. big tech . For shareholders, these long-term contracts reduce the boom-bust cyclicality that has historically punished memory stocks.
Dominant Market Share Commands Premium Pricing — For Now
SK Hynix ranked first globally in HBM with a 56.4% revenue market share in Q1 2026, according to IDC . Gross margins expanded to 79.3% in Q1 2026, up from 60.4% for full-year 2025 . But that dominance is under pressure: Samsung and Micron are pushing to expand their own output, though neither has published a named, dollar-denominated Nvidia agreement of this scale .
A Rich Valuation Leaves Little Room for Missteps
SK Hynix's most recent quarterly results already saw shares "nosedive" when revenue of $54.55 billion missed the $84 trillion won consensus . At a forward price-to-earnings ratio of roughly 5.5 times , the stock looks cheap by U.S. standards — but memory investors know that today's margins can evaporate when supply catches up. SK Hynix's CEO forecasts a shortage lasting into 2027 and demand outstripping supply beyond 2030 , but a single stumble in execution could quickly erase today's gains.