SK Hynix shares jump on AI memory demand outlook

Shares of South Korea’s SK Hynix surged on Tuesday after rival chipmakers Micron Technology and Samsung Electronics reported robust sales of AI-focused memory chips, reinforcing expectations for continued demand in the high-bandwidth memory (HBM) segment.

The gains followed Micron’s fiscal third-quarter earnings release, which included a 53% year-over-year increase in data center revenue, driven by AI server deployments. Samsung separately reported a 14% rise in chip business operating profit for the same period, citing strong HBM sales to hyperscale cloud providers.

SK Hynix, the world’s second-largest memory chip producer, has positioned itself as a key supplier for AI data centers, with HBM products accounting for an expanding share of its revenue. The company’s latest quarterly results, released last month, showed a 22% increase in total revenue, with HBM shipments rising 45% sequentially.

Analysts at JPMorgan and Goldman Sachs upgraded their ratings on SK Hynix this week, citing the sustained AI infrastructure build-out as a structural tailwind. JPMorgan raised its price target to 280,000 South Korean won from 240,000 won, while Goldman Sachs cited potential upside from long-term HBM contracts with major cloud providers.

The stock’s 7.2% intraday gain brought its year-to-date advance to 28%, outpacing broader South Korean equity benchmarks. Investors are closely watching SK Hynix’s next earnings report, scheduled for late July, for further updates on HBM pricing and demand trends.