This Under-the-Radar Supplier Could Be Nvidia's Secret Weapon
The two companies recently formed a supply and co‑development partnership that will see sk hynix deliver an estimated $500 billion worth of high‑bandwidth memory (HBM) to nvidia over the next several years.
Key points
- sk hynix will supply nvidia with $500 billion of hbm memory over several years
- sk hynix holds 50% of the global hbm market share, microns 18% and samsung 33%
- the partnership gives sk hynix a long‑term anchor contract and secures nvidia a steady hbm supply
HBM is a scarce component that sits inside nvidia’s GPUs to reduce latency and power consumption. As of the second quarter, sk hynix holds a 50% share of the global HBM market, compared with microns 18% and samsung’s 33%. The deal gives sk hynix a long‑term anchor contract with the largest AI infrastructure company, while nvidia secures a steady supply of the critical memory that keeps its AI chips running at peak performance.
The partnership is framed as a huge coup for both firms. For sk hynix, the contract offers visibility to expand capacity in a cyclical market; for nvidia, it reinforces its advantage in a compute‑starved world. The forward P/E for sk hynix is 5.5 times 2027 analyst estimates, and for nvidia it is below 15 times fiscal 2028.
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This Under-the-Radar Supplier Could Be Nvidia's Secret Weapon
fool.com · 3 October 2026
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