Intel Corporation (INTC) and SK Hynix (SKHY) are exploring partnership opportunities for U.S. memory chip manufacturing, driving significant increases in their stock prices this week. Reports surfaced on Wednesday that the discussions focus on Intel’s Ohio manufacturing complex, although no formal agreements have been made. Since then, INTC shares have risen approximately 10%, while SKHY has climbed about 5%. Notably, SK Hynix’s stock has seen a 20% increase since its U.S. Nasdaq debut in July.
In Q2, Intel’s revenue soared 25% year-over-year to $16.1 billion, fueled by a 59% surge in Data Center and AI revenue, while management projected Q3 sales between $15.8 and $16.8 billion. In contrast, SK Hynix reported record Q2 performance amid high AI demand and began mass shipments of its latest high-bandwidth memory (HBM) product. The Zacks Consensus estimates indicate SK Hynix’s revenue could exceed $240 billion by FY26, a staggering 250% increase.
Despite strong earnings forecasts, SK Hynix trades at a forward P/E ratio of 7X, making it notably cheaper compared to Intel’s over 100X valuation. Overall, SK Hynix holds a Zacks Rank #2 (Buy), while Intel has a Zacks Rank #3 (Hold), reflecting their differing growth prospects and market valuations.
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