SK Hynix Supplies More Than Half the World's HBM Memory. Its Stock Costs Under 4 Times Next Year's Earnings.

SK Hynix's second-quarter revenue rose 257% year over year, and its operating margin reached 76%.

The company held a 58% share of the high-bandwidth memory market in the first quarter of 2026, according to Counterpoint Research.

A forward price-to-earnings ratio below 4 implies investors expect profits to fall sharply after next year.

SK Hynix (NASDAQ: SKHY) sells more than half of the world's high-bandwidth memory (HBM) -- the specialized chips that feed data to the processors running artificial intelligence (AI) models. The company carried a 58% share of that market in the first quarter of 2026, according to Counterpoint Research, and demand for its products is so intense that its operating margin reached 76% last quarter.

Yet the stock costs less than 4 times forward earnings estimates , even after jumping 8% on Tuesday. As of this writing, shares sit near $154, about 21% below their 52-week high of $194.80.

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A forward multiple that low is usually the market's way of saying earnings are about to peak. So, is the market right this time? I'm not so sure it is.

The memory maker's second quarter, reported at the end of July, was extraordinary. Revenue came in at 79.3 trillion Korean won (about $55 billion), up 257% year over year, and operating profit soared 557% to 60.5 trillion won (about $42 billion).