As China's Memory Industry Grows, SK Hynix Dismisses Glut Fears: 'We Do Not Believe' Oversupply Is Near
SK Hynix Inc. (NASDAQ: SKHY ) on Wednesday pushed back against concerns that aggressive investment in AI memory production could lead to a supply glut, saying it does not expect its expansion plans to create oversupply in the near future. “We do not believe our medium- to long-term investment plans will lead to oversupply right away,” Song Hyunjong, President of Corporate Center, said during the company’s second-quarter earnings call. AI Demand Continues to Outpace Supply SK Hynix said its investment strategy remains tied to confirmed customer demand rather than speculative capacity expansion, adding that long-term supply agreements and growing adoption of high-bandwidth memory provide confidence in future demand. The company expects 2026 capital expenditure to reach the high end of its previously guided 40 trillion KRW ($27.58 billion) range as it expands high-bandw...
SK Hynix Inc. (NASDAQ: SKHY ) on Wednesday pushed back against concerns that aggressive investment in AI memory production could lead to a supply glut, saying it does not expect its expansion plans to create oversupply in the near future. “We do not believe our medium- to long-term investment plans will lead to oversupply right away,” Song Hyunjong, President of Corporate Center, said during the company’s second-quarter earnings call.
AI Demand Continues to Outpace Supply SK Hynix said its investment strategy remains tied to confirmed customer demand rather than speculative capacity expansion, adding that long-term supply agreements and growing adoption of high-bandwidth memory provide confidence in future demand.
The company expects 2026 capital expenditure to reach the high end of its previously guided 40 trillion KRW ($27.58 billion) range as it expands high-bandwidth memory (HBM) production and advanced packaging capacity.
The Nvidia Corp. (NASDAQ: NVDA ) supplier said AI infrastructure bottlenecks could delay some AI projects, but maintained that investment will remain robust beyond next year, driven by cloud providers’ AI spending and broader AI adoption.
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Founded in 2016, CXMT held a 7.67% share of the global DRAM market in the fourth quarter of 2025.
SK Hynix holds about 29% of the global DRAM market, trailing Samsung Electronics Co Ltd.’s 39% share while remaining ahead of Micron Technology Inc. ‘s (NASDAQ: MU ) 22%.
The South Korean chipmaker expects third-quarter DRAM shipments to rise about 10% and NAND shipments to increase about 3%, while the full-year demand forecast is roughly 25% growth for DRAM and 18% for NAND.
Quarterly Revenue Tops Records, Profit Misses Expectations For the second quarter, SK Hynix reported operating profit of 60.54 trillion KRW ($41.72 billion), up 557% from a year earlier but below the 64 trillion KRW ($44.11 billion) consensus estimate compiled SmartEstimate.
Revenue rose 257% year over year to a record 79.32 trillion KRW ($54.67 billion).
Price Action: SKHY’s American Depository Receipts closed 8.98% lower on Tuesday at $130.17 and fell further by 1.37% in the early hours of pre-market trading on Wednesday.
Seoul-listed shares closed 9.61% to 1,401,000 KRW ($965.47). edge rankings indicate SKHY has a Value score in the 51st percentile and a Growth score in the 97th percentile.
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