SK Hynix, South Korea's second-largest company, launched US trading on July 10 with strong momentum, and controls 58% of the global high-bandwidth memory market essential to AI infrastructure. The company reported 198% revenue growth and 398% net income growth in its recent quarter, backed by its position as Nvidia's primary memory partner. While the stock trades at a valuation discount to peers, investors must weigh the cyclical nature of the memory market against the breadth of current AI demand.
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South Korean memory chipmaker SK Hynix began trading on the Nasdaq via American depositary receipts (ADRs) on July 10, with shares advancing 13% on the first day and closing just over $168. The company reported recent quarterly revenue growth of 198% to about $35 billion（約5.6兆円） and net income growth of 398%, with an operating margin of 72%.
Why it matters
SK Hynix holds 58% global share of the high-bandwidth memory (HBM) market—a type of memory in high demand from AI customers—and serves as Nvidia's main memory partner under a recently reinforced multi-year technology partnership. This positions the company to benefit from sustained AI infrastructure spending, though investors should note the memory market is historically cyclical.
What to watch
SK Hynix trades at 4.8× 12-month forward earnings, a discount to the industry median of 29.84× and rival Micron's 6.6×. The key question is whether the current AI boom will sustain longer than past memory cycles or lead to a sharper demand decline later.
SK Hynix's US market entry marks a milestone for one of the chief beneficiaries of the AI chip boom. The company's exceptional recent financial results—198% revenue growth and 398% net income growth—reflect the extraordinary demand for high-bandwidth memory, a critical component that stacks memory close to processors and is essential for AI workloads. Its 58% share of this market and designation as Nvidia's primary memory partner underscore its strategic importance in the AI infrastructure supply chain, reinforced by the two companies' recent multi-year technology pact.
Yet the valuation picture suggests caution. SK Hynix trades at a significant discount to the broader memory sector and to Micron, which may reflect investor awareness that memory markets are inherently cyclical—periods of intense demand have historically been followed by inventory corrections and price declines. The critical question for investors is whether the current AI cycle will prove materially different, sustaining elevated demand far longer than previous cycles or merely delaying the downturn. The body acknowledges this uncertainty explicitly, suggesting that risk tolerance and investment horizon should guide buy decisions rather than growth metrics alone.
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