SK Hynix

SK Hynix is a South Korean supplier of dynamic random-access memory (DRAM) chips and flash memory chips, and one of the world's largest semiconductor vendors.

“SK Hynix (Hynix)’s share price returned 82% for the period and an astounding 280% for the year as a whole. Hynix has arguably been one of the biggest beneficiaries of the boom in AI-related investment within the emerging market universe. Its investment in High Bandwidth Memory (HBM) has paid off handsomely; Hynix is the primary supplier of these chips to Nvidia for use in data centres, with its traditional rival Samsung being the laggard. The third generation of these chips (HBM3) will still predominate in 2026; however, the fourth generation (HBM4) has been approved by Nvidia and will start being shipped later this year. The lack of spare capacity means the market is in short supply, which supports pricing (Figure 1). The overall lack of capacity in the memory market has also fed through into the traditional memory market, which is positive for profits from that part of its business too. Despite the strong share price performance, Hynix trades at an undemanding 6x earnings for 2026.”

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