SK Hynix’s $950 Billion Korean Tech Pact Raises the Stakes Ahead of a Crucial Earnings Report
Published on 07/25/2026 at 18:41 | Redaktion boerse-global.de
The numbers coming out of Seoul this weekend are staggering, but they arrive at a moment when investors are running for the exits. South Korea announced a $950 billion partnership package between its homegrown technology conglomerates and US tech giants on Saturday, with SK Hynix securing a long-term supply commitment worth up to $750 billion to Nvidia, Microsoft, and other partners. The timing could hardly be more awkward: the announcement landed just one day after SK Hynix shares suffered their worst single-day drop in recent memory.
The stock closed Friday at 1,759,000 won in Seoul, shedding 8.34 percent in a single session. That rout was part of a broader sell-off that has now erased 31.82 percent over the past 30 trading days. From the 52-week high set in late June, the shares have cratered 41.11 percent. The pain was widespread across the Korean market — the Kospi index fell more than 4 percent on Friday, while Samsung Electronics dropped roughly 6.5 percent. President Lee Jae-myung used the San Francisco announcement to frame South Korea as a central hub in the global AI supply chain, but the market’s message was clear: investors are questioning whether the AI spending spree will ever deliver the promised returns.
Inside the Mega-Deal
The core of the package is an agreement between SK Group and Nvidia valued at more than $500 billion, spanning multiple years. SK Hynix has committed to long-term deliveries of AI memory chips, including to Microsoft. In a parallel initiative, SK Telecom plans to build an AI factory with up to two gigawatts of capacity, using Nvidia’s Vera-Rubin platform and SK Hynix’s HBM4 memory, with initial facilities expected to come online from 2027. Samsung Electronics separately signed a $200 billion memorandum with Broadcom for memory and foundry capacity. Anthropic has also agreed with SK Telecom to develop a gigawatt-scale data center, while Nvidia announced an investment in Korean internet giant Naver. The combined value of all announced projects reaches the $950 billion figure.
Why the Market Is Running Scared
The sell-off in SK Hynix is not an isolated event. Quarterly reports from major US technology companies have reignited doubts about whether the enormous sums being poured into AI infrastructure will ever generate adequate returns. Investors are taking profits across the entire semiconductor supply chain, and SK Hynix — as the primary supplier of high-bandwidth memory chips to Nvidia — is bearing the brunt.
Should investors sell immediately? Or is it worth buying SK Hynix?
Despite the carnage, the company’s market position remains intact. In the HBM segment, SK Hynix is estimated to hold 56 to 58 percent share for early 2026. But capital is fleeing what market observers describe as an “overcrowded” tech trade. Reports of normalizing demand for NAND flash memory have added to the headwinds.
Citi Research, however, sees the sell-off as overdone. The bank reiterated its buy rating on both SK Hynix and Samsung on Friday, pointing out that the memory supply-to-demand ratio has fallen from roughly 70 percent to about 50 percent — historically a sign of tight inventories, not the end of demand. Citi argues that fears of a cyclical peak, weak China demand, and bloated inventories are misplaced, and that AI-driven demand for NAND memory will multiply in the coming years. KB Securities is sticking with its price target of 4.2 million won for SK Hynix, a level far above the current share price. Both firms point to rising DRAM spot prices, which have now risen for more than 40 consecutive trading days.
Not everyone is convinced. Skeptics warn that Samsung could expand its HBM capacity, and that a NAND oversupply could emerge from the third quarter of 2027 if industry-wide investment accelerates too quickly. One analyst has downgraded the stock to a hold rating, citing valuation risks after the steep run-up in recent months.
Technical Picture and the Earnings Catalyst
The chart tells a story of a broken short-term trend. SK Hynix now trades nearly 20 percent below its 50-day moving average. The relative strength index stands at 40.1, approaching oversold territory but not yet at the classic reversal point. For context, the stock is still up 170.74 percent year-to-date — a gain that puts the current correction in perspective, even if it offers little comfort to those who bought near the June highs.
SK Hynix at a turning point? This analysis reveals what investors need to know now.
All eyes now turn to Wednesday, July 29, when SK Hynix reports second-quarter earnings. Analysts expect record revenue and record profit, driven by the ongoing super-cycle in AI memory chips. Consensus estimates point to revenue growth of more than 250 percent year-over-year, fueled by aggressive DRAM price increases. But the headline numbers alone won’t be enough. The market will scrutinize management’s outlook on HBM4 production yields and demand stability from key customers 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. Conversely, any signal of cooling HBM growth could extend the correction into the third quarter.
The $950 billion partnership package provides a powerful narrative backdrop, but the earnings call on July 29 will determine whether that narrative holds — or whether the market’s growing skepticism is justified.
Ad
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.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
