SK Hynix Dominates Global HBM Memory Market While Stock Remains Below Four Times Projected Earnings

Key Points

• SK Hynix’s second-quarter revenue surged to 79.3 trillion Korean won (approximately $55 billion), up 257% year over year, with an operating profit of 60.5 trillion won (about $42 billion), a 557% increase.

• The company commanded a 58% share of the high-bandwidth memory market in Q1 2026, as per Counterpoint Research.

• The stock currently trades at a forward price-to-earnings ratio below 4, indicating market skepticism about future profitability.

SK Hynix (NASDAQ: SKHY) reported exceptional financial results for Q2, with a revenue increase of 79.3 trillion Korean won, marking a 257% year-over-year growth, and a significant leap in operating profit to 60.5 trillion won. The company’s operating margin also widened to 76%, showcasing strong demand for its products, particularly in the AI sector where it holds a 58% market share for high-bandwidth memory.

The company’s market capitalization is around $805 billion, and its current trading multiple suggests investors anticipate a potential profitability decline, despite its strong quarterly performance. SK Hynix attributes its success to long-term contracts with key customers and robust demand, particularly for its latest products. However, concerns remain about oversupply in the memory market as competitors ramp up production.