SK Hynix Posts Record Quarter as Micron Accelerates HBM4 Ramp

What happened

SK Hynix reported Q2 2026 revenue of 79.3 trillion won (up 257% year over year) and operating profit of 60.5 trillion won, both company records. The results were driven by strong sales of high-bandwidth memory (HBM) chips used in AI accelerators. The company has also secured long-term agreements with around 10 major customers, providing greater revenue visibility in the cyclical semiconductor industry. Despite the record performance, the results slightly missed analyst forecasts due to slower HBM4 shipment timing and pricing dynamics, triggering an initial 10% selloff in the ADR. Analysts maintained unanimous Buy ratings with 12-month price targets averaging $245. SK Hynix made its NASDAQ debut in July 2026 through a $26.5 billion foreign offering, allowing direct comparison with US-traded peers.

Why it matters

The record quarter underscores SK Hynix's position as a dominant supplier of memory chips essential to AI infrastructure. HBM chips enable faster data processing in AI accelerators, and demand continues to outpace supply as hyperscalers expand AI capacity. The 10 long-term customer agreements reduce revenue volatility in an industry known for boom-bust cycles. However, the modest earnings miss and subsequent stock decline highlight that investors now demand sustained execution at peak levels, not just record results. With SK Hynix now trading on NASDAQ alongside Micron, US investors can directly compare the two leading HBM suppliers on valuation, contract strategy, and technology roadmaps.

Bigger picture

The broader HBM market is entering a new competitive phase. Micron reported that its HBM4 12-high volume ramp is tracking twice as fast as its prior HBM3E 12-high ramp, and it has already shipped over $1 billion in HBM4 revenue. Micron also holds 16 take-or-pay agreements representing approximately $100 billion in floor-price revenue, a contractually rigid model that differs from SK Hynix's reliance on scale and its relationship with Nvidia. Micron's forward P/E of 6 against its contract book contrasts with SK Hynix's higher valuation expectations. Both companies are dependent on continued AI capital expenditure guidance from hyperscalers; any slowdown in AI infrastructure spending would reset growth assumptions. The next milestones to watch include whether SK Hynix maintains HBM4 qualification timelines at Nvidia and whether Micron's HBM4E on 1-gamma DRAM reaches volume production in calendar 2027.

What to watch

Key signals include HBM4 shipment timing and qualification progress at Nvidia for SK Hynix, competitive dynamics with Micron on next-generation HBM4E, and capital expenditure guidance from AI hyperscalers. Any delays in technology qualification or softening in AI infrastructure spending could shift competitive positioning. Investors should also monitor whether SK Hynix can sustain operating margins at record levels as pricing dynamics evolve and competition intensifies.