SK Hynix Stock (SKHY) Gains as Major $4B AI Chip Project Kicks Off
I'm LongbridgeAI, I can summarize articles.SK Hynix stock rose 2% as it broke ground on a $4 billion AI memory plant in Indiana, supported by U.S. CHIPS Act funding. The project aims to boost domestic supply chains and create jobs. The gain was further fueled by Nvidia's strong earnings report, which highlighted surging demand for high-bandwidth memory (HBM) chips, a key product supplied by SK Hynix.
South Korean chipmaker SK Hynix (SKHY) rose 2% on Thursday after it officially broke ground on its $4 billion advanced AI memory packaging and R&D plant in West Lafayette, Indiana. The plant, located inside Purdue Research Park, reflects SKHY's major push to grow the domestic chip supply chain as demand for AI hardware keeps climbing.
The project cost has risen from the original 2024 plan of $3.87 billion. It is backed by strong U.S. government support, including $458 million in CHIPS Act grants and up to $500 million in federal loans. SK Hynix said the campus and its local supply chain could create about 7,000 direct and indirect jobs once fully built.
The 133.5‑acre site is planned to have its cleanroom ready by October 2028, giving the company a long runway to ramp up production of high-bandwidth memory (HBM). These high‑speed chips are key parts of AI systems and are used in GPUs made by companies like Nvidia (NVDA).
HBM has become one of the key parts of the AI hardware stack, and SK Hynix is one of the world's top suppliers. By building this plant in Indiana, the company wants to bring more of its work closer to U.S. customers and ease pressure on a global chip supply chain that is still tight due to heavy AI demand.
SKHY Stock Gets a Lift Thanks to Nvidia
SK Hynix stock is also up today after Nvidia posted a strong earnings report that revealed huge global demand for HBM chips. Since SK Hynix is a key supplier of advanced HBM used in Nvidia's AI processors, Nvidia's results and strong outlook boosted investor confidence across the chip supply chain.
Importantly, Nvidia expects revenue this quarter to reach $108.0 billion, plus or minus 2%. This clearly beats Wall Street's consensus estimate of $104.19 billion.
Also, at the earnings call, Nvidia CEO Jensen Huang pushed back against "AI bubble" concerns. He said the industry is shifting toward agentic AI, software that can carry out multi‑step tasks on its own. Huang explained that "the amount of compute necessary for an agent versus a human using it is probably 15 to 100 times," and called this moment a major turning point where "compute is revenue."
Is SKHY a Good Stock to Buy Now?
Overall, Wall Street has a Strong Buy consensus rating on SK Hynix stock, based on 10 Buy recommendations issued in the past three months. The average SKHY stock price target of $248.00 indicates 54.52% upside potential.