SK Hynix Scraps Memory Contract Price Caps as AI Demand Surges
SK Hynix is one of the world’s leading memory manufacturers. Its long-term supply agreements traditionally included price caps to reduce cost volatility for customers. As AI servers drive widespread adoption of high-bandwidth memory (HBM), DRAM supply and demand have tightened. Removing the caps allows contract prices to rise with spot-market rates, further expanding profit potential.
SK Hynix recently removed memory price caps from all of its latest long-term supply agreements, allowing contract prices to directly reflect market increases. Analysts estimate that demand for HBM and AI could push its DRAM gross margin close to 90% in the second quarter of 2026, challenging its record high. The forecast has also fueled debate over whether profitability is nearing its ceiling.
All Coverage
1 original reportsThe Backstory
The history behind this eventSK Hynix Tops $1 Trillion in Market Value as AI Memory Demand Drives Shares to Record High
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.
KB Securities Raises SK Hynix Price Target to 1.9 Million Won on Strong AI Demand
SK Hynix is a leading global supplier of DRAM and NAND memory and a major producer of high-bandwidth memory for AI servers. As investment in generative AI infrastructure expands, rising purchases of servers and enterprise SSDs have made memory prices a key driver of the company’s earnings and share price.
KB Securities raised its price target for SK Hynix to 1.9 million won in its latest report and forecast that the company’s operating profit could reach 40 trillion won in the first quarter of 2026, far above market expectations. The report said demand from AI servers and enterprise SSDs was driving sharp increases in DRAM and NAND prices, with that momentum expected to continue supporting the business.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.