SK Hynix Locks In 70% of Nvidia's Next-Gen Memory Orders, But Can It Keep This Crown as Rivals Close In?

Reports emerged this week that SK Hynix has secured approximately 70% of initial orders for Nvidia's next-generation high-bandwidth memory chips destined for the Vera Rubin AI platform — a deal that cements the Korean chipmaker's pole position in the hottest corner of the semiconductor market, while raising pointed questions about how long that dominance can last. SK Hynix Locks In 70% of Nvidia's Next-Gen Memory Orders, But Can It Keep This Crown as Rivals Close In?

Reports emerged that SK Hynix has captured roughly 70% of Nvidia's initial orders for next-generation high-bandwidth memory — the ultra-fast chips critical to powering AI data centers — for Nvidia's upcoming Vera Rubin AI platform . That share significantly exceeds earlier estimates that pegged it closer to 50% , and the deal's implications for shareholders are substantial. In June 2026, the two companies formalized a multi-year co-development agreement extending through 2030, complete with advance payments from Nvidia — a signal that this is no ordinary supplier contract.

• A 72% Profit Margin Shows the Financial Payoff of Being First — In Q1 2026, SK Hynix nearly tripled revenue year over year, while operating profit surged 405% . The operating margin reached a remarkable 72% — meaning for every dollar of sales, roughly 72 cents became profit. Revenue hit 52.58 trillion won ($35.55 billion) . That profitability is directly tied to HBM pricing power: "customers are prioritizing procurement over price," an SK Hynix executive said . Shareholders are benefiting from a product so scarce that buyers have little leverage to negotiate.

• The Market Is Booming, and SK Hynix Owns the Biggest Slice — The global HBM market ballooned from roughly $16 billion in 2024 to $38 billion in 2025, and is estimated to hit $58 billion in 2026 . SK Hynix was ranked first globally in HBM revenue with a 56.4% market share in Q1 2026, according to IDC . The company is entirely sold out of HBM capacity through 2026 . For investors, sold-out capacity means revenue visibility is unusually high — the question is less whether they'll earn, and more how much prices will rise.

• Samsung and Micron Are Catching Up, Capping the Upside — Nvidia confirmed that Samsung and Micron have passed qualification for next-gen memory, opening the door to three suppliers . Counterpoint Research predicts SK Hynix will hold 54% of the HBM4 market in 2026, with Samsung at 28% and Micron at 18% . Samsung is mounting a massive counter-offensive, pivoting heavily toward high-margin AI server products . SK Hynix's share lead is real but narrowing — investors should watch whether 70% of Nvidia's orders translates into sustained dominance or a peak before competitors erode margins.

• The Bigger Picture: AI Memory Is Becoming a Long-Term Fuel Contract — Companies are no longer making one-off procurement decisions — they're signing multi-year supply agreements with advance payments, treating AI compute components the way energy companies treat long-term fuel contracts . SK Group's chairman stated the global chip shortage is likely to persist until 2030 . That structural scarcity is the real bull case for HY9H.F shareholders — not just one order, but years of locked-in demand.