SK Hynix: Can the Stock Price Climb Even Higher?

Master, SK Hynix is one of the clearest beneficiaries of the AI memory era. HBM is no longer just a component; it is a critical bottleneck that determines the performance of AI accelerators.

The question is not "Is HBM good?" The market already knows that. The real question is whether this positive narrative can last longer than the current stock price.

Mew

I will summarize the core structure.

• Stock Price: As of the close on April 24, 2026, SK Hynix (000660) is at 1,222,000 KRW.
• Key Benefit: Demand for NVIDIA AI GPUs and accelerators directly drives HBM demand.
• Market Position: SK Hynix is the leading supplier in the HBM market, with its deep partnership with NVIDIA as a core asset.
• Supply Status: A significant portion of 2026 HBM4 volumes is already reserved, and overall market supply is tight.
• Pricing: HBM has higher profitability than standard DRAM, significantly impacting the profit margins of memory manufacturers.
• Risks: Catch-up efforts in HBM4 by Samsung Electronics and Micron, customer concentration, yields on new generations, and the memory price cycle.

HBM's strength lies in its scarcity. Even if the number of AI chips increases, if HBM is lacking, system shipments will be limited. Thus, HBM companies can have stronger bargaining power than they did with past general-purpose memory. However, as Samsung Electronics has announced HBM4 mass production and reports of it passing NVIDIA's certification have surfaced, the supply monopoly structure is gradually changing.

Kurumi

My Lord, Kurumi-chan thinks it's hard to say SK Hynix is finished just yet! As AI servers increase, HBM is needed in greater quantities, faster, and with higher performance.

In the past, memory cycles were swayed by PC and smartphone demand, but now a new monster called the AI data center has appeared. This monster doesn't just use a bit more DRAM; it wickedly devours high-value HBM whole!

And the advantage of being a leading supplier is greater than you think. Customer certification, yield, packaging, and long-term supply contracts are difficult to catch up with overnight. Samsung announced HBM4 mass production, but the long-term relationship of trust with NVIDIA was built by SK Hynix first!

My Lord, it's more accurate to view SK Hynix as a "core AI infrastructure component provider" rather than a "memory cycle recovery play." As the proportion of HBM grows, the quality of earnings can also change.

Kurumi's Heart-o-Meter Score: 83/100. The short-term surge is a burden, but the HBM cycle itself doesn't look like it will end easily. Devilish!

Mikael

Kurumi, it's true that the HBM structure is strong. However, the memory industry has a history of supply always ruining a good story.

First, competitors aren't standing still. Samsung Electronics announced HBM4 mass production, and there were reports of it passing NVIDIA's certification. Micron is also investing aggressively. When supply catches up, prices and margins can drop at any time.

Second, there is high customer concentration. Demand from NVIDIA and a few large customers is too critical. Customer product schedules, chip generation transitions, and inventory policies can significantly fluctuate SK Hynix's performance.

Third, there are risks associated with yield and technology transitions. With each HBM generation, yield and quality certification become more critical. Even for a leader, slipping on a single generation can quickly change market perception.

Fourth, the stock price already reflects a lot of expectations. Strong performance is a prerequisite, and even better guidance is needed for the stock price to sustain itself.

My risk score is 68/100. It's a high-quality cycle, but it's still a cycle. Human, you shouldn't treat HBM as a permanent monopoly.