SK Hynix Buzzing with Anticipation of Potential Blockbuster Deal with Nvidia
SK Hynix Buzzing with Anticipation of Potential Blockbuster Deal with Nvidia
Market expectations are soaring for SK Hynix. In Q3 2025, SK Hynix announced earnings that surpassed market expectations, recording an operating profit of KRW 11.3834 trillion and revenue of KRW 24.4489 trillion. These strong results are attributed to the rapid growth of the artificial intelligence (AI) semiconductor market and the market's recognition of SK Hynix's high-bandwidth memory (HBM) technology. In particular, SK Hynix announced plans to establish a mass production system for the 6th generation HBM4 and begin shipments in the fourth quarter, expanding sales from next year, further boosting expectations for future performance. The market's attention is focused on whether SK Hynix can secure a 'mega-deal' with Nvidia following Open AI.
SK Hynix is leading the HBM market, and its collaboration with Nvidia is particularly significant. Nvidia dominates the AI GPU market, and SK Hynix's HBM is essential for maximizing the performance of Nvidia's GPUs. SK Hynix has already announced that its HBM products have been sold out since 2023 and added that it has confirmed next year's HBM supply contracts with major customers. During the Q3 earnings conference call, SK Hynix predicted that the supply of HBM products would remain tight relative to demand even in 2027, highly valuing the growth potential of the HBM market. In this situation, further cooperation with Nvidia is expected to further strengthen SK Hynix's growth momentum.
The recent moves of Nvidia CEO Jensen Huang are also fueling market expectations. Jensen Huang is scheduled to present his vision for AI at the APEC CEO Summit on October 31st. In particular, SK Group Chairman Chey Tae-won reportedly requested Jensen Huang to attend the APEC event, raising the possibility of discussions between the two companies. Furthermore, Jensen Huang stated at the 'GTC 2025' conference on October 28th that “there will be an announcement that will please the Korean people,” amplifying expectations for a collaboration announcement with SK Hynix. Although Jensen Huang did not mention specific details, industry insiders believe that an expanded HBM supply agreement or a new collaboration model announcement with SK Hynix is highly likely.
SK Hynix plans to significantly increase capital expenditures next year compared to this year to actively respond to the growth of the AI market. This is interpreted as an investment to expand HBM production capacity and accelerate the development of next-generation memory technology. SK Hynix plans to continue investing to secure a competitive advantage in the HBM market and take the lead in the AI semiconductor market. In addition, SK Hynix is expected to focus on strengthening the AI semiconductor ecosystem and securing new growth engines through cooperation with Nvidia. SK Hynix's aggressive investment and the possibility of cooperation with Nvidia are expected to have a positive impact on SK Hynix's future earnings improvement and stock price increase.
Meanwhile, some are raising cautious opinions regarding the success of cooperation with Nvidia. Analysts suggest that competition from rivals is intensifying, and the competitive environment in the HBM market may become more fierce. However, SK Hynix possesses unparalleled technology in the HBM field and is expected to maintain market competitiveness based on its long-standing partnership with Nvidia. In addition, SK Hynix plans to further widen the technological gap with competitors and further strengthen market leadership through the development of next-generation HBM technology. SK Hynix's continuous technological innovation and close cooperation with Nvidia are expected to be key drivers for successful growth in the HBM market.
