SK Hynix Chairman
SK Group Chairman Chey Tae-won pledged to expand production of high-bandwidth memory chips to meet surging demand from global data center buildouts, calling HBM a "monster chip" generating enormous profits as the South Korean chipmaker's entire 2026 capacity sold out ahead of schedule.
The production commitment came during a Washington conference on February 20 as US technology companies including Microsoft and Meta allocate approximately $650 billion for AI infrastructure in 2026—double last year's spending—creating unprecedented demand for specialized memory chips required in AI accelerators from Nvidia and other manufacturers.
BlackRock Stake and Market Performance Signal Investor Confidence
SK Hynix shares gained 6.2% to 949,000 won ($656.29) on February 23, surpassing the previous intraday high of 931,000 won set January 30. The gains followed a regulatory filing revealing BlackRock owns 36,407,157 shares representing a 5% stake in the company.
Analysts now expect SK Hynix operating profit exceeding 100 trillion won in 2026, up from January estimates of 70 trillion won. The upward revisions reflect the company's dominant position in high-bandwidth memory where it commands 62% market share supplying Nvidia accelerator platforms facing acute shortages.
SK Hynix held 32.9% of the overall DRAM market in Q4 2025 according to Omdia, with sales rising 25.2% quarter-over-quarter to $17.2 billion. Samsung Electronics increased DRAM sales 40.6% to $19.1 billion in the same period, capturing 36.6% global market share.
Global Memory Industry Shifts to Seller's Market
Speaking at a Goldman Sachs investor conference in February 2026, SK Hynix delivered an unusually direct market assessment: "The global memory industry has completely shifted to a seller's market, with price increases expected throughout 2026."
The company disclosed current DRAM and NAND inventory across the industry stands at approximately four weeks' worth, with no single customer able to fully satisfy demand. HBM capacity for 2026 has sold out ahead of schedule across SK Hynix and competitors Samsung and Micron Technology.
"We cannot meet the needs of all customers this year, and continued price increases are a foregone conclusion," SK Hynix stated plainly at the conference.
Capital Expenditure Surge and Technology Migration
SK Hynix announced in January 2026 that capital expenditure will increase significantly from prior year levels to satisfy HBM demand, targeting a CapEx-to-revenue ratio in the mid-30% range. The company continues migrating to advanced 1c nanometer DRAM process technology while expanding 321-layer NAND production.
The chipmaker completed world-first HBM4 development in October 2025 and began mass production, becoming the first in the industry to reach this stage. Full-scale HBM4 sales are planned for 2026, with the product offering double the bandwidth and 40% improved power efficiency compared to HBM3E.
UBS projects SK Hynix will achieve approximately 70% market share in the HBM4 market for Nvidia's next-generation Rubin platform in 2026. Goldman Sachs assessed the company will maintain dominant position in HBM3 and HBM3E until at least 2026, sustaining total HBM market share exceeding 50%.
Two-Sided Risk Despite Record Profit Outlook
Chairman Chey cautioned that AI-driven demand carries enormous two-sided risk despite record profit projections. Building a single AI data center in the United States requires investment up to $50 billion, he noted, while computing power demands on the order of 100 gigawatts imply total capital expenditure potentially reaching $5 trillion before energy costs.
"Energy, environmental, and financial constraints make it genuinely uncertain whether the industry can deliver on these targets," Chey warned. If AI infrastructure investment slows or demand disappoints, the same memory capacity generating record profits today could become a massive liability.
SK Hynix expects DRAM demand growth to remain above 20% in 2026, with NAND growing in the high-teens percentage range. The company announced formation of a US-based AI solutions entity called "AI Company" with $10 billion committed capital budget, aimed at delivering optimized AI systems for data center customers in partnership with American AI companies.
The supply tightness extends beyond HBM. Concentration of production lines on high-margin AI memory products has created knock-on shortages in standard DRAM used in consumer electronics, raising prospects for higher prices in smartphones, laptops, and other devices through 2026.
