Waiting for $SKHYB 's earnings report
Three questions worth watching
1. Can HBM4 shipments ramp up on schedule?
SK hynix began mass production and shipments of HBM4 in the second quarter and plans to expand production in the second half of the year. However, recent South Korean media reports indicate that progress on NVIDIA's Rubin platform and HBM4 performance tuning could affect third-quarter shipments. This still needs to be confirmed by management.
2. Can memory price increases continue?
In addition to HBM, rising selling prices for high-end DRAM and NAND are also important drivers of earnings growth. The market estimates that DRAM average selling prices could rise by about 21% quarter over quarter in the third quarter, but this is a brokerage forecast, not a price increase that has already been realized.
3. Special dividends and share buybacks
There are market rumors that a special dividend of around 16 trillion won may be paid. The company has confirmed that it is evaluating shareholder return options, but as of October 26, no final decision had been made.
What the earnings report means for $NVDA
My initial take on this earnings report is that the memory industry's profit outlook is trending upward, but its impact on NVIDIA's share price still depends on HBM4 shipments and progress on the Rubin platform.
If SK hynix confirms that HBM4 shipments are accelerating and customer orders continue to grow, that would help validate demand for NVIDIA's next-generation AI platform.
Conversely, if revenue beats expectations mainly because of higher memory prices, but HBM4 shipments fall short of expectations, that would not necessarily be a positive signal for NVIDIA.
After the earnings report is released at 8:00 a.m. today, the key points will not be whether SK hynix has set another record for profits, but actual HBM4 shipments, supply contracts for 2027, and management's outlook for Rubin.
Three questions worth watching
1. Can HBM4 shipments ramp up on schedule?
SK hynix began mass production and shipments of HBM4 in the second quarter and plans to expand production in the second half of the year. However, recent South Korean media reports indicate that progress on NVIDIA's Rubin platform and HBM4 performance tuning could affect third-quarter shipments. This still needs to be confirmed by management.
2. Can memory price increases continue?
In addition to HBM, rising selling prices for high-end DRAM and NAND are also important drivers of earnings growth. The market estimates that DRAM average selling prices could rise by about 21% quarter over quarter in the third quarter, but this is a brokerage forecast, not a price increase that has already been realized.
3. Special dividends and share buybacks
There are market rumors that a special dividend of around 16 trillion won may be paid. The company has confirmed that it is evaluating shareholder return options, but as of October 26, no final decision had been made.
What the earnings report means for $NVDA
My initial take on this earnings report is that the memory industry's profit outlook is trending upward, but its impact on NVIDIA's share price still depends on HBM4 shipments and progress on the Rubin platform.
If SK hynix confirms that HBM4 shipments are accelerating and customer orders continue to grow, that would help validate demand for NVIDIA's next-generation AI platform.
Conversely, if revenue beats expectations mainly because of higher memory prices, but HBM4 shipments fall short of expectations, that would not necessarily be a positive signal for NVIDIA.
After the earnings report is released at 8:00 a.m. today, the key points will not be whether SK hynix has set another record for profits, but actual HBM4 shipments, supply contracts for 2027, and management's outlook for Rubin.