HBM Price Gains Ease as AI Chip Computing Supply Chain Evolves

SK Hynix has become a prime beneficiary of the AI infrastructure boom, using its lead in high-bandwidth memory, or HBM, to supply chips that feed data to AI accelerators. Demand for HBM, server DRAM and enterprise solid-state drives, combined with sharply higher memory prices, has turned a cyclical recovery into a semiconductor supercycle. KB Securities estimated that global technology companies and AI data-center operators represented about 70% of second-quarter revenue.

On July 29, SK Hynix reported 2026 second-quarter revenue of 79.32 trillion won and operating profit of 60.54 trillion won, up 257% and 557% from a year earlier, respectively. Its operating margin reached 76%. Net profit surged to 93.92 trillion won, producing a 118% net margin, as all three measures set quarterly records. Even so, revenue and operating profit missed a 14-brokerage consensus of 84.1 trillion won and 64.1 trillion won, showing how elevated expectations have become.

High-bandwidth memory has become a critical component in generative AI accelerators, combining advanced manufacturing, packaging and customer-specific design to deliver faster data transfer. With HBM4 reportedly accounting for more than half of an AI chip’s cost, suppliers such as SK Hynix are gaining greater influence over accelerator pricing, production schedules and the broader economics of expanding AI computing capacity.

SK Hynix said it is negotiating with major customers to finalize HBM supply volumes and pricing for 2027. The company said its prices would reflect advanced-process investment and the value of its products, rather than simply tracking conventional DRAM market prices. The talks come as HBM4 enters mass production and shipment, making the outcome increasingly important for the cost of next-generation AI chips.

SK Hynix, one of the world’s leading memory suppliers, had planned to expand production of sixth-generation high-bandwidth memory, or HBM4, to meet demand for AI chips. But tightening supply and demand for conventional DRAM and improving margins have prompted the company to reallocate capacity. The move could strengthen profitability, while giving Samsung Electronics an opportunity to narrow SK Hynix’s lead in HBM market share.

As of July 20, 2026, market sources said SK Hynix would delay its HBM4 mass-production and production-line conversion schedules to prioritize shortages of conventional DRAM. The company has not disclosed the length of the delay, the amount of capacity to be shifted or the investment involved. Following the reports, Taiwanese memory stocks Nanya Technology and Winbond Electronics extended their declines in early trading.

SK Hynix is a major South Korean memory-chip maker and a key supplier of high-bandwidth memory, or HBM, to NVIDIA. As generative AI and high-performance computing expand, HBM has become a critical component in AI accelerators, prompting investors to reassess the company’s growth potential and industry position.

In the latest trading as of July 2026, SK Hynix’s market capitalization exceeded $1 trillion, making it the third Asian company to cross that threshold. Its shares have doubled so far this year and reached a record high, bringing its market value close to that of Samsung Electronics. Micron also crossed the $1 trillion mark over the same period, while UBS raised its price target for the company to $1,525.

High-bandwidth memory (HBM) delivers large volumes of data to AI accelerators with high bandwidth and low power consumption, making it a critical component in the race for generative AI computing power. After a downturn in the memory market, SK hynix rebounded through technology investment and its supply partnership with Nvidia, becoming a key company in the global AI semiconductor supply chain.

South Korean broadcaster KBS was granted access to SK hynix’s M16 wafer fabrication plant for the first time. Its program “The World Seen for the First Time” showed the company’s secret HBM production line operating around the clock, along with employees at work. The report did not specify an air date, investment amount or production capacity, but footage from the facility showed the company working at full speed to meet demand for AI memory.

SK hynix is a leading global supplier of high-bandwidth memory, or HBM. Its operating profit could double as the expansion of generative AI model training drives memory demand. HBM has become a critical component in the AI server supply chain, and the company’s earnings directly affect whether semiconductor employees share in the industry’s gains.

As of July 20, 2026, SK hynix shares had surpassed 1.2 million won to reach a record high. After the company adopted a bonus system tied to operating profit, analysts estimated that employees’ average annual profit-sharing bonus could reach 700 million won, or about NT$15 million. Related reports put the amount at between NT$13 million and NT$15 million.