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SK Hynix Rallies After Nvidia Says AI Demand Has "Gone Parabolic"

The market move reflects outsized Q1 profits, HBM orders above current capacity, forecasts of steep DRAM and NAND price rises.

Overview

  • SK Hynix shares climbed roughly 7% on Tuesday, pushing South Korea’s KOSPI over the 8,000 mark as investors repriced memory suppliers for stronger AI demand.
  • The company reported Q1 revenue of 52.58 trillion won and operating profit of 37.61 trillion won, a 405% year‑on‑year jump and a 72% operating margin.
  • SK Hynix said multi‑year customer requests for high‑bandwidth memory already exceed its current production capacity and unveiled iHBM, a thermal solution that cuts thermal resistance by about 30%.
  • Market researcher TrendForce projects conventional DRAM contract prices could rise 58–63% quarter‑on‑quarter and NAND flash prices 70–75% in Q2 2026, a forecast that has helped fuel analyst upgrades.
  • Analysts including UBS, Mirae Asset and SK Securities raised price targets and earnings forecasts, a shift that could lift chipmakers’ revenue while putting upward pressure on memory costs for data‑center buyers.