SK Hynix’s Record Margins and $14 Billion IPO Plans Do Little to Halt a Brutal 10% Selloff

The numbers tell a story of two halves. SK Hynix commands 58% of the global high-bandwidth memory (HBM) market, its operating margin has hit an eye-watering 72%, and quarterly revenue has breached 50 trillion won for the first time. Yet on Friday, investors cut the stock by nearly 10%, sending shares crashing to 2,070,000 won in Seoul. The week ended with an 11% loss.

The trigger came from across the Pacific. Broadcom’s downbeat forecast spooked the entire semiconductor sector, and SK Hynix — deeply intertwined with Nvidia’s AI accelerator supply chain — got caught in the downdraft. The selloff arrived just as management was preparing to pitch a bold new chapter: a US initial public offering that could raise up to $14 billion.

A Wall Street Debut and a Production Blitz

The company plans to list American depositary receipts on Wall Street before the year is out, targeting deep-pocketed US institutional investors. Proceeds will go straight into the production ramp. SK Hynix aims to double its DRAM output to one million wafers per month by the end of the decade, with the first phase of its new Yongin complex coming online as early as early 2027. The emphasis is squarely on high-performance memory for AI data centres.

That expansion is already underpinned by extraordinary operational performance. In the first quarter of 2026, the memory maker controlled a commanding share of the HBM market — chips that are essential for Nvidia’s accelerators. Surging contract prices for both DRAM and NAND flash have fuelled a super-cycle that pushed margins to levels the industry has never seen.

Should investors sell immediately? Or is it worth buying SK Hynix?

Huang in Seoul: From Memory to Robotics

The selloff coincided with Nvidia chief Jensen Huang’s visit to Seoul, where he held talks with the top brass of SK, Samsung, Hyundai and LG. The conversation has shifted beyond pure memory procurement. Huang is now stressing robotics and physical AI, a direction that widens SK Hynix’s strategic role. The company already integrates AI tools into its own chip fabrication and is building an AI factory powered by more than 50,000 Nvidia GPUs under the broader SK Group umbrella.

On the product roadmap, Nvidia is ramping production of its Vera-Rubin platform, which promises a tenfold performance leap over the current Grace Blackwell generation. For SK Hynix, securing firm supply contracts for that platform would validate its current valuation — but without new commercial commitments, the focus shifts to technical support levels.

Technical Cooling Amid a 205% Year-to-Date Rally

The correction has taken the heat out of a stock that had run exceptionally hot. The relative strength index has fallen to around 60, exiting the overbought zone. That still leaves a gaping buffer of more than 40% before the 50-day moving average at 1,457,100 won — a line that would serve as a medium-term floor if selling pressure persists. The stock now sits exactly 14% below the all-time high set in early June.

SK Hynix at a turning point? This analysis reveals what investors need to know now.

The near-term direction hinges on the outcomes of Huang’s Seoul meetings. Absent new binding agreements, the 50-day line remains the next meaningful support. But with a $14 billion US listing in the works, record product margins and a doubling of DRAM capacity on the horizon, the fundamental narrative is arguably stronger than the weekly chart suggests.

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SK Hynix Stock: New Analysis - 6 June

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