SK Hynix Smashes Records with Nvidia AI Boom—Leaves Samsung Eating Dust in Q2 Showdown

AI chips are printing money—and SK Hynix just cashed the biggest check. Riding Nvidia’s coattails, the Korean memory giant posted record-breaking Q2 earnings, outperforming local rival Samsung in a high-stakes tech arms race.

The takeaway? When AI gold rushes happen, sell shovels. Or in this case, HBM chips.

Samsung’s PR team is already spinning this as ‘friendly competition’—but let’s be real. In semiconductor wars, second place just means you’re the first loser. Bonus jab: Wall Street analysts are now ‘suddenly bullish’ on SK Hynix—right after upgrading their price targets. How convenient.

SK Hynix outearns Samsung again in Q2

SK Hynix has outgained Samsung Electronics in advanced memory sales for the second quarter in a row, mainly because of its position as the leading supplier of HBM chips to Nvidia.

SK Hynix pointed out growing investment in sovereign AI, which refers to government efforts aimed at developing independent national AI infrastructure, as a source of demand in the future. The company’s shares went up by more than 2% in early trading, following the earnings release.

SK Hynix’s performance contrasts with that of Samsung’s, which projected a 56% profit decline in Q2. One of the major causes is its struggle to meet Nvidia’s strict requirements for its AI chips.

SK Hynix’s share price has tripled since the beginning of 2023, with Bank of America analysts forecasting further growth in global HBM revenue from $35.7B in 2024 to $57.5B in 2027.

What does the memory chip market look like in 2026?

Despite SK Hynix’s momentum, analysts are pointing out potential risks further down the line. Analysts at Goldman Sachs reduced their rating for the company from “Buy” to “Neutral” in a note published last week. As more memory chip makers expand production, the competition is expected to intensify.

Goldman Sachs warned that HBM pricing could decline for the first time next year, as the market gets more saturated. SK Hynix’s reliance on Nvidia especially leaves it exposed to changes in customer strategy or pricing leverage.

This could become a problem if Nvidia decides to diversify suppliers or push for lower prices.

Analysts have also identified areas of opportunity for competitors like Samsung. Goldman Sachs stated that application-specific integrated circuit (ASIC) chips may become the fastest-growing segment in the HBM market.

As SK Hynix focuses on supplying Nvidia, it gives Samsung the opportunity to target companies building their own ASIC chips.Samsung may be able to benefit from Nvidia resuming shipments of its less advanced H20 AI chip to China.

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