SK Hynix Supplies More Than Half the World's HBM Memory. Its Stock Costs Under 4 Times Next Year's Earnings.

Published August 6, 2026 · Category: Finance

Overview

SK Hynix (NASDAQ: SKHY) sells more than half of the world's high-bandwidth memory (HBM) -- the specialized chips that feed data to the processors running artificial intelligence (AI) models. The company carried a 58% share of that market in the first quarter of 2026, according to Counterpoint Research, and demand for its products is so intense that its operating margin reached 76% last quarter.

Yet the stock costs less than 4 times forward earnings estimates, even after jumping 8% on Tuesday. As of this writing, shares sit near $154, about 21% below their 52-week high of $194.80.

Details

A forward multiple that low is usually the market's way of saying earnings are about to peak. So, is the market right this time? I'm not so sure it is.

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Source

Originally published at www.fool.com.

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