SK Hynix beats AMD as analyst's 2026 AI stock pick

The comparison sits against a backdrop the article describes as the AI boom shifting into a more mature phase, which puts a sharper focus on valuations. AMD's case rests on its processor business: FY 2025 revenue of $34.6 billion, up 34.3%, net income of $4.3 billion, and a late-2025 partnership with OpenAI to supply graphics processors for AI infrastructure. SK Hynix's case rests on memory: FY 2025 revenue of 97.2 trillion Korean won, up 46.8%, net income of 42.9 trillion won, and a 44.2% net margin. The article notes that AMD's stock-based compensation represented 21.2% of operating cash flow, which inflates reported cash generation.

The two also carry different risk profiles. AMD faces competition from Intel and Nvidia, depends on third-party manufacturers like Taiwan Semiconductor Manufacturing Company, and is exposed to geopolitical tensions and export controls on products sold to China. SK Hynix operates in a cyclical memory industry where prices can fluctuate, faces competition from Samsung Electronics, and requires heavy capital spending. Memory, though, is described as essential for AI training, and the article points to a 'memory wall' that HBM helps solve.

The analyst's call hinges on whether that demand keeps SK Hynix's results at record levels and whether its lower multiple holds up as investors weigh the two names. The article notes that valuation metrics come from Financial Modeling Prep and may differ from other data providers.