NVIDIA Pact Powers SK Hynix’s Rally, but Wall Street Banks Slam the Brakes on Leveraged Bets
13.06.2026 - 10:44:38 | boerse-global.de
SK Hynix has roared into the spotlight with a staggering 217% year-to-date gain, fuelled by insatiable demand for AI memory chips. A freshly sealed multi-year technology alliance with NVIDIA adds yet more fuel to the fire. Yet behind the scenes, prime brokers at the world’s largest investment banks are pulling the emergency cord on speculative wagers — raising borrowing costs and, in some cases, halting new swap trades altogether.
The deal, announced on 7 June 2026, goes well beyond a conventional supply agreement. SK Hynix will develop high-performance memory solutions for NVIDIA’s upcoming Vera Rubin AI supercomputers, Vera central processors, RTX Spark PCs and the Jetson Thor robotics platform. The collaboration also integrates AI into the chip-design process using NVIDIA’s CUDA-X libraries and PhysicsNeMo simulation tools. Jensen Huang, NVIDIA’s chief executive, stressed that advanced memory is the lifeblood of modern AI factories, while SK Group chairman Chey Tae-won pointed to years of joint engineering work as the foundation of the partnership.
The market wasted no time in rewarding the news. Shares closed the week at 2,150,000 KRW, a nearly 4% weekly gain that included a 2% advance on Friday alone. That marks more than a quadrupling from the 52-week low of 491,500 KRW touched in October 2025. The stock now sits about 11% below its all-time high of 2,407,000 KRW set in early June — a gap the NVIDIA pact provides a solid reason to challenge.
Should investors sell immediately? Or is it worth buying SK Hynix?
Analysts remain overwhelmingly bullish. Of 43 experts covering the stock, almost all recommend buying. The average price target has climbed to nearly 2.7 million Won, implying significant further upside from current levels. The optimism rests on two additional catalysts beyond the NVIDIA tie-up: an ambition US listing on the Nasdaq, which could materialise as soon as August, and an expansion of manufacturing capacity with a new plant in the Honam region of South Korea aimed at alleviating the shortage of high-bandwidth memory chips.
Yet the very ferocity of the rally has triggered alarm among prime brokers. Morgan Stanley is reportedly refusing new swap transactions tied to SK Hynix shares altogether. Goldman Sachs, JPMorgan Chase and Citigroup have sharply increased the cost of financing for leveraged bets. Hedge funds looking to use swaps to ride the stock higher now face interest charges of up to 15% — a fraction of that level as recently as May. Behind the clampdown lies fear of a violent technical reversal. The stock currently trades 37% above its 50-day moving average, and its annualised volatility has blown past 100%.
SK Hynix’s fundamental strength is formidable. It is the world’s second-largest producer of DRAM and NAND memory, holding 33% and 21% of those respective markets. High-bandwidth memory used in AI accelerators represents the most profitable growth segment, and industry watchers expect double-digit revenue expansion along with rising margins from premium pricing on leading-edge products.
For now, the rally faces a clear test. If the withdrawal of cheap leverage forces hedge funds and other speculative players to unwind their positions, a swift pullback cannot be ruled out. On the upside, the nearest resistance sits at the annual high just above 2.4 million Won. A clean break above that level would clear the path toward the analysts’ consensus target — and keep the tension between Wall Street’s caution and the AI-driven long-term story firmly in the spotlight.
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SK Hynix Stock: New Analysis - 13 June
Fresh SK Hynix information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
