For Immediate Release <\/p>\n
Chicago, IL \u2013 September 2, 2026 \u2013 Today, Zacks Investment Ideas feature highlights SK Hynix SKHY and NVIDIA NVDA. <\/p>\n
Stacks for Success: Inside SK Hynix’s\u00a0HBM Dominance <\/p>\n
Zacks Rank #2 (Buy) stock SK Hynix is a South Korean semiconductor giant that manufactures memory chips. The company is South Korea’s second-largest company and the world’s largest memory chip supplier. SK Hynix specializes in manufacturing the highly sought-after dynamic random-access memory (DRAM) and NAND flash memory chips. These chips are used in electronics such as smartphones and personal computers. Additionally, SK Hynix is experiencing exploding demand from AI data centers. <\/p>\n
With ~55% market share, SK Hynix is the dominant player in the rapidly growing High Bandwidth Memory (HBM) market. The company is the leading memory supplier for artificial intelligence hardware providers like NVIDIA. SK Hynix’s lightning-fast, vertically stacked HBM chips sit next to graphics processing units (GPUs), enabling more efficient artificial intelligence training and inference in data centers. <\/p>\n
SK Hynix Experiences Insatiable Demand <\/p>\n
A massive memory bottleneck is driving the AI revolution. With only a handful of other global memory giants like Samsung and Micron (MU),\u00a0the company has leveraged its pricing power and gross profit margins to a juicy 70%+. Meanwhile, in 2025, SKHY’s earnings per share more than doubled as annual revenue jumped 42% year-over-year. <\/p>\n
NVIDIA Partnership Provides Visibility <\/p>\n
Last week, AI leader NVIDIA delivered one of the most impressive earnings reports in history. The company reportedly earned a staggering $1 billion in daily revenue. Meanwhile, NVIDIA boosted its outlook and Zacks Consensus Analyst Estimates suggest that it will grow in the high double-digits through 2028. As a major NVIDIA supplier, this gives Wall Street investors crystal-clear long-term visibility into compute demand. <\/p>\n
SK Hynix Benefits from U.S. Onshoring <\/p>\n
As trade tensions between the U.S. and China reach a tipping point, the U.S. is working to ensure complex chip manufacturing gets onshored in the next few years. On August 27th, SK Hynix broke ground on a $4B HBM facility in West Lafayette, Indiana, with mass production of next-gen HBM targeted for late 2029. The project is backed by ~$458M in CHIPS Act funding and $500M in loans. <\/p>\n
Bottom Line <\/p>\n
As artificial intelligence workloads continue to stretch data center capabilities to their limits, memory bandwidth remains the single critical hurdle in hardware performance. SK Hynix has positioned itself at the center of the AI supply ecosystem. <\/p>\n
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a> <\/p>\n NVIDIA Corporation (NVDA) : Free Stock Analysis Report<\/a> <\/p>\n SK Hynix, Inc. – Sponsored ADR (SKHY) : Free Stock Analysis Report<\/a> <\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a> <\/p>\n