SK Hynix says AI chip demand shows no signs of slowing in 2026

SK Hynix Inc. said it sees no signs of a slowdown in artificial intelligence-related investment, pushing back against market fears that erased nearly half its market value from last month's record highs.

"We currently see no signs of an artificial intelligence investment slowdown," a company spokesperson said. The statement comes as the broader semiconductor sector faces a selloff triggered by concerns about rising competition from Chinese chipmakers.

The reassurance from SK Hynix — a key supplier of high-bandwidth memory (HBM) used in AI training — follows a brutal week for chip stocks. Seoul-listed SK Hynix sank 14.7%, while Samsung Electronics fell more than 13%. Both companies have shed nearly 50% of their market value since hitting all-time highs last month, according to market data. The rout extended across Asia, with Tokyo's Nikkei falling 4% as Advantest and Tokyo Electron tumbled, and Taipei's benchmark dropping more than 4% as TSMC took a hit.

The selloff was partly fueled by reports that Shanghai Yuliangsheng had started mass production of chipmaking technology long dominated by Dutch firm ASML, while Chinese memory maker CXMT (ChangXin Memory Technologies) surged nearly 500% in its Shanghai IPO, raising $8.6 billion. CXMT now serves 7.67% of the global DRAM market and is being evaluated as a supplier by Dell, Acer and HP.

HBM Demand Remains the Core Driver

SK Hynix's statement highlights a central tension in the memory market: while consumer DRAM prices have surged 4x to 5x above July 2025 levels, the real profit center lies in HBM chips for data centers. The company has been shifting production toward HBM, a specialized type of DRAM that stacks memory dies vertically to deliver the bandwidth required for AI workloads.

The bet is paying off. Air Liquide SA reported signing a €200 million contract with SK Hynix for advanced packaging of HBM in South Korea. The French industrial gases supplier's electronics segment posted 10% comparable sales growth in the second quarter, with project decisions exceeding €1 billion in the first half — 1.5 times the total for all of 2025, CEO François Jackow said.

CXMT Emerges as a New DRAM Supplier

CXMT's emergence as a viable DRAM supplier adds a new variable to a market long dominated by Samsung, SK Hynix and Micron Technology. While CXMT's DDR5 modules are compatible with most motherboards and Corsair is starting to use its memory, initial testing found its chips consume more power and offer less overclocking headroom than the Big Three's latest offerings. CXMT's focus on consumer-grade DRAM — leaving the more profitable HBM segment to established players — could help stabilize PC memory prices. Lenovo is already using CXMT's DRAM in some models, and Apple is evaluating the company as a supplier for China-bound products.

SK Hynix's reaffirmation of AI demand comes as investors await earnings this week from the company, Samsung and Kioxia, as well as US tech giants Microsoft, Meta, Apple and Amazon. The company's HBM-focused strategy targets the most lucrative part of the memory market, but the broader selloff suggests investors are pricing in risks from both Chinese competition and the sustainability of AI capital expenditure. If SK Hynix delivers strong earnings that confirm its statement, it could provide a floor for semiconductor stocks that have lost half their value in weeks.

This article is for informational purposes only and does not constitute investment advice.