Zacks Investment Ideas feature highlights: SK Hynix and NVIDIA

For Immediate Release

Chicago, IL – September 2, 2026 – Today, Zacks Investment Ideas feature highlights SK Hynix SKHY and NVIDIA NVDA.

Stacks for Success: Inside SK Hynix's HBM Dominance

Zacks Rank #2 (Buy) stock SK Hynix is a South Korean semiconductor giant that manufactures memory chips. The company is South Korea's second-largest company and the world's largest memory chip supplier. SK Hynix specializes in manufacturing the highly sought-after dynamic random-access memory (DRAM) and NAND flash memory chips. These chips are used in electronics such as smartphones and personal computers. Additionally, SK Hynix is experiencing exploding demand from AI data centers.

With ~55% market share, SK Hynix is the dominant player in the rapidly growing High Bandwidth Memory (HBM) market. The company is the leading memory supplier for artificial intelligence hardware providers like NVIDIA. SK Hynix's lightning-fast, vertically stacked HBM chips sit next to graphics processing units (GPUs), enabling more efficient artificial intelligence training and inference in data centers.

SK Hynix Experiences Insatiable Demand

A massive memory bottleneck is driving the AI revolution. With only a handful of other global memory giants like Samsung and Micron (MU), the company has leveraged its pricing power and gross profit margins to a juicy 70%+. Meanwhile, in 2025, SKHY's earnings per share more than doubled as annual revenue jumped 42% year-over-year.

NVIDIA Partnership Provides Visibility

Last week, AI leader NVIDIA delivered one of the most impressive earnings reports in history. The company reportedly earned a staggering $1 billion in daily revenue. Meanwhile, NVIDIA boosted its outlook and Zacks Consensus Analyst Estimates suggest that it will grow in the high double-digits through 2028. As a major NVIDIA supplier, this gives Wall Street investors crystal-clear long-term visibility into compute demand.

SK Hynix Benefits from U.S. Onshoring

As trade tensions between the U.S. and China reach a tipping point, the U.S. is working to ensure complex chip manufacturing gets onshored in the next few years. On August 27th, SK Hynix broke ground on a $4B HBM facility in West Lafayette, Indiana, with mass production of next-gen HBM targeted for late 2029. The project is backed by ~$458M in CHIPS Act funding and $500M in loans.

Bottom Line

As artificial intelligence workloads continue to stretch data center capabilities to their limits, memory bandwidth remains the single critical hurdle in hardware performance. SK Hynix has positioned itself at the center of the AI supply ecosystem.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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