SK Hynix’s Record $500 Billion Nvidia Pact Fails to Halt a 41% Rout From June Peaks
Published on 07/25/2026 at 15:02 | Redaktion boerse-global.de
The paradox playing out at SK Hynix is hard to ignore: a landmark partnership with Nvidia worth more than half a trillion dollars, and a stock that has shed over 40 percent of its value in less than a month. On Friday, shares of the South Korean memory-chip giant closed at 1,759,000 won, down 8.34 percent in a single session, extending a sell-off that has now erased nearly a third of the company’s market value over the past 30 trading days.
The disconnect between corporate news flow and market reaction has rarely been starker. Over the weekend, SK Group and Nvidia confirmed the expansion of their strategic AI alliance, with the total deal volume exceeding $500 billion. The agreement covers the construction of AI data centers and the co-development of next-generation memory. Under the terms, SK Telecom will build a 2-gigawatt AI factory based on Nvidia’s Vera Rubin DSX platform and SK Hynix’s HBM4 memory, with the first facility slated to go live in 2027. SK Hynix itself has entered a long-term memory partnership with Nvidia to jointly develop the next HBM generation, while also securing a long-term supply agreement with Microsoft.
The broader package is even more staggering: SK Group announced $750 billion in cooperation agreements over five years with Nvidia, Microsoft, Anthropic, and AWS. Combined with Samsung’s $200 billion deal with Broadcom, South Korea now boasts total AI investment commitments of $950 billion. Nvidia CEO Jensen Huang met with President Lee Jae Myung during the announcement and signaled further partnerships with both SK Hynix and Samsung in chip design.
Yet the market yawned. The sell-off at SK Hynix is part of a broader rotation out of AI-exposed semiconductor names. Micron also fell roughly 8 percent on Friday, approaching bear-market territory, while the PHLX semiconductor index now trades more than 20 percent below its highs. The trigger: quarterly reports from major US technology companies that revived questions about when the enormous capital spending on AI infrastructure will translate into tangible returns. Investors are taking profits across the chip supply chain, and SK Hynix — as Nvidia’s primary supplier of high-bandwidth memory — is bearing the brunt.
Should investors sell immediately? Or is it worth buying SK Hynix?
Foreign investors, according to one report, had already been reducing their positions ahead of the earnings season. The stock now sits nearly 20 percent below its 50-day moving average, a clear break of the short-term uptrend. The relative strength index at 40.1 is approaching oversold territory but has not yet triggered a reversal signal. From the 52-week high set in late June, the gap now exceeds 41 percent.
For some analysts, however, the correction looks overdone. Morgan Stanley expects the HBM supply bottleneck to tighten further through 2027 and 2028, while KeyBanc raised its price target for rival Micron to $1,750. Both houses view the recent pullback in Samsung and SK Hynix shares — which have fallen more than 20 percent from their late-June peaks — as excessive. The fundamental picture supports that view: SK Hynix and Samsung together control over 80 percent of the global HBM market. SK Hynix began mass production of HBM4 in February and held roughly 90 percent of the high-end segment in the first quarter. South Korea’s HBM exports rose 39 percent quarter-on-quarter in Q2. UBS projects the HBM market will grow 77 percent in 2027, driven by AI infrastructure demand.
The next test comes on Wednesday, July 29, when SK Hynix reports second-quarter earnings. Analysts expect record revenue and record profit, with consensus estimates pointing to revenue growth of more than 250 percent year-over-year, fueled by sharp DRAM price increases. But the headline numbers alone won’t be enough this time. The market will scrutinize management’s outlook on HBM4 production yields and demand stability from hyperscalers like Alphabet, Microsoft, and Amazon. Confirmed long-term contracts or direct investments from these tech giants into SK Hynix’s production lines could stabilize the stock. A signal of cooling HBM growth, by contrast, could extend the correction into the third quarter.
SK Hynix at a turning point? This analysis reveals what investors need to know now.
On a year-to-date basis, SK Hynix still trades 170.74 percent higher — a reminder that even a brutal correction leaves the stock well above where it started 2026. But for investors who bought near the June peak, that is cold comfort. Wednesday’s earnings call will determine whether the current rout is a buying opportunity or the beginning of a deeper reassessment of the AI memory cycle.
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SK Hynix Stock: New Analysis - 25 July
Fresh SK Hynix information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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