Hello, this is Daily Stock. Following the close of the Korean stock market on Saturday, June 20, 2026, we will conduct an in-depth review of SK Hynix's HBM shipments and technological competitiveness, which represent the hottest topic in the next-generation AI memory market.
Executive Summary
- **Commencement of Next-Gen 7th-Gen HBM4E Sample Shipments**: SK Hynix has begun supplying 12-layer samples of HBM4E—a 7th-generation high-bandwidth memory utilizing 10nm-class 6th-generation (1c) microprocessing technology—to major customers, taking an early lead in the next-generation market.
- **Record-Breaking Quarterly Performance and Sold-Out Status**: Following a phenomenal operating profit margin of 72% in Q1 2026, the company's entire HBM production volume for this year has already sold out, proving its robust and monopolistic supply position.
- **Pursuit of a 40 Trillion KRW US ADR Nasdaq Listing**: Highlighting its upcoming American Depositary Receipt (ADR) listing on the Nasdaq as early as July, the potential for global capital inflows and expanded shareholder returns is emerging as a core market momentum builder.
[Image: /stdaily/uploads/202606/gen_6a363ac24636b6.20243080.png]
Current Situation Summary
Recently, the global AI semiconductor market has seen intensified competition focused on "optimization" to overcome hardware performance limitations.
On June 18, SK Hynix announced that it has commenced supplying 12-layer samples of its 7th-generation HBM4E—designed to power NVIDIA's next-generation AI accelerator platform, "Vera Rubin Ultra"—to key big tech customers.
This marks a prompt countermeasure following Samsung Electronics' declaration of a world-first 7th-generation sample supply last month, signifying a heating up of the microprocessing technology race to defend next-generation memory dominance.
SK Hynix's HBM4E is built on 10nm-class 6th-generation (1c) process DRAM, pushing data transfer rates up to 16Gbps per pin and improving energy efficiency by over 20% compared to previous HBM4 versions.
Furthermore, utilizing its proprietary "Advanced MR-MUF" packaging process, the company reduced thermal resistance by 17% compared to before, maximizing structural stability in high-performance computing environments.
Financial Analysis
SK Hynix's finalized Q1 2026 results demonstrated unprecedented profitability metrics in the history of the semiconductor industry.
As shipments of 12-layer HBM3E products—memory designed for AI servers—began in earnest, the company's transition from a cyclical asset centered on commodity DRAM to a high-growth tech stock accelerated.
Additionally, a high exchange rate environment hovering around 1,533.00 KRW/USD acts as a favorable macroeconomic variable for the company, which relies heavily on exports, bolstering its performance when translated into Korean Won.
| Classification | Q1 2026 Results (Finalized) | YoY Change | Key Highlights |
|---|---|---|---|
| **Revenue** | 52.5763 trillion KRW | Continued explosive growth | Surge in supply of HBM3E and high-value eSSDs |
| **Operating Profit** | 37.6103 trillion KRW | Achieved historic record performance | Impact of concentrated sales of high-value-added products |
| **Operating Margin** | 72% | Highest level in manufacturing history | Expansion of HBM share, which carries superior margins compared to commodity DRAM |
| **Net Income** | 40.3459 trillion KRW | Reached 77% net margin | Reflects improvements in non-operating income and equity method gains |
Valuation
Currently, SK Hynix is evaluated as having exceptional downside price protection since high-value-added AI memory supply contracts are locked under Long-Term Agreements (LTAs), unlike commodity memory.
The event receiving the most market attention is the 40 trillion KRW US American Depositary Receipt (ADR) Nasdaq listing, scheduled to be completed as early as July.
While the listing, awaiting final SEC approval, will proceed via a new share issuance—sparking temporary concerns over dilution of shareholder value—expectations that this will serve as a funding source for expanded shareholder returns, such as higher future payout ratios and a broader global investor base, are overriding these concerns.
Major domestic brokerages, including Mirae Asset Securities, estimate a 3-year average Return on Equity (ROE) of 66% and present price-to-book (P/B) re-rating scenarios, noting the stock's clear undervaluation compared to global peers.
Unlike commodity memory, customized HBM establishes steep technological barriers, which is projected to provide relatively strong valuation support even during industry downturns.
Analyst and Institutional Insights
Major overseas investment banks (IBs) and domestic research centers continue to revise upward SK Hynix's annual earnings estimates for 2026.
Nomura Securities aggressively raised its annual operating profit forecasts for 2026 and 2027 to 256 trillion KRW and 365 trillion KRW, respectively. Macquarie Securities also projected a 2026 operating profit of 272 trillion KRW, indicating that the company's hyper-gap rally is expected to be prolonged.
Analysts evaluate that SK Hynix has secured an effective "monopolistic super-supplier" status through its approval for installation in NVIDIA's Blackwell platform, the main chip of the AI server market.
However, if competitors strengthen their back-end packaging technologies to begin supply during the HBM4 process phase, the monopolistic structure could transition into a multi-player system, generating downward pressure on Average Selling Prices (ASPs).
Consequently, advisors emphasize that yield gaps based on technical superiority will serve as the core metric for maintaining earnings going forward.
Risk Factors
- **Challenges in Securing Yield Due to Scaling and Stacking**: As stacking shifts to 12-layer and 16-layer formats for HBM4 and HBM4E, structural thickness issues pose persistent risks regarding thermal control and yield degradation.
- **Customer Dependency Risk**: Customized next-generation HBM is fully synchronized with specific big tech chip architectures. If a client's business roadmap or investment pace slows, it could instantly translate into an inventory burden.
- **Geopolitical and Macroeconomic Volatility**: While benefiting from a high USD/KRW rate of 1,533.00 KRW, macroeconomic risks—such as further US interest rate fluctuations and restrictions on importing global semiconductor equipment—continue to elevate investment volatility.
Investment Perspective
SK Hynix is solidifying its leadership in the HBM market based on overwhelming, preemptive R&D, as proven by its fully sold-out annual supply.
As of June 20, 2026, the KOSPI Fear & Greed Index calculated by Daily Stock stands at 51.9 (Neutral), reflecting a tight tug-of-war between caution over overheating and buying interest focused on large, high-performing stocks. Conversely, the Nasdaq Fear & Greed Index, serving as a global benchmark, has reached 37.3 (Fear), reflecting dampened sentiment due to macro uncertainties.
Accordingly, a scenario where liquidity concentrates on large-cap, high-quality stocks featuring earnings certainty and solid mid-to-long term catalysts—like the ADR listing—is highly anticipated.
Going forward, quarterly yields and the defense of supply margins will be key variables determining the long-term momentum of the stock price.
[Image: /stdaily/uploads/202606/gen_6a363acd92c796.25647101.png]
Investment Checklist
Q1. What is the significance of the HBM4E sample shipments that started recently?
- It is a 7th-generation product designed for NVIDIA's next-generation AI platform, "Vera Rubin Ultra," scheduled for release next year. It serves as a core indicator of preemptive technological verification to secure next-gen market dominance.
Q2. What does it mean that the 2026 HBM supply is already "sold out"?
- It means that due to preemptive data center investments by major global tech companies, all Long-Term Agreements (LTAs) for SK Hynix's planned HBM capacity for this year have been signed, placing the company in an exceptionally stable position with high earnings visibility.
Q3. What are the expected benefits of the 40 trillion KRW US ADR Nasdaq listing?
- It establishes a direct channel for inflows of global infrastructure funds and US local capital, which is expected to support expanded shareholder returns through massive capital raising, as well as stock re-rating.
Q4. What is SK Hynix's unique technological defense line against catching-up competitors?
- It is the "Advanced MR-MUF" packaging technology, a patented process tested in the market for years, which guarantees excellent heat dissipation and stable yields, drastically preventing product defect rates.
Q5. What is the most critical metric to monitor for future investment?
- Real-time yield stabilization data occurring in 16-layer and HBM4+ next-gen microprocesses, and the defense margin of export revenues translated into KRW amid USD/KRW exchange rate fluctuations.