SK Hynix CEO Warns Memory Shortage Will Persist Through 2030 as Chipmaker Builds $4 Billion Indiana Fab

Nvidia (NVDA) reported Q2 2027 revenue up 106% YoY, with data center sales rising 117%. However, gross margins are expected to drop from 75% to 71-72% in Q4 due to rising memory costs. Nvidia's CFO attributed this to supply constraints from memory suppliers Micron (MU), Samsung, and SK Hynix, which are benefiting from increased demand. Nvidia expects margins to recover in fiscal 2028 as price increases take effect.

Micron (MU) fell 3% and Western Digital (WDC) dropped 4% despite NVIDIA's (NVDA) $279B memory commitment, while SK Hynix (SKHY) gained 1%. The Roundhill Memory ETF (DRAM) declined 0.9% to $55.87, contrasting with a 1% rise in the iShares Semiconductor ETF (SOXX). NVIDIA's CFO attributed the increased commitments to memory procurement for next-gen platforms, with SK Hynix being the sole gainer in the group.

Nvidia secured $279 billion in multi-year memory purchase commitments, a 135% increase, to ensure supply for AI demand. This move may pressure competitors like AMD, which saw a 1.87% share drop. Memory makers like SK Hynix and Samsung gained, while Micron fell despite a recent rally. Nvidia's Q4 gross margin guidance is 71-72%, reflecting higher memory costs.

SK hynix (SKHY) announced a $28.6B share buyback program, repurchasing up to 3.3% of outstanding shares. The company aims to return over 50% of free cash flow from 2025-2027. SKHY's shares initially rose 4% but closed with a modest gain. The move follows strong Q2 results, with revenue up 257% and operating profit up 557%.

SK Hynix (SKHY) and Samsung Electronics (SSNLF) shares fell in Seoul and U.S. markets, with SK Hynix dropping 5% and Samsung declining 3%, amid reports of U.S. pressure on Korean chipmakers to invest in American facilities. The KOSPI index also dropped 2.66%. The U.S. reportedly wants Korean companies to invest in U.S. memory-chip production to ensure stable supplies, following Seoul's KRW 800 trillion Honam Semiconductor Mega Project announcement.

Samsung Electronics approved a 90-110 trillion won shareholder return plan for 2026, the largest in Korean history, but shares fell 8.7% as investors expected more. U.S. memory stocks like Micron, Seagate, and SK Hynix also dropped. The payout was seen as disappointing due to its structure and deferred details. Sandisk's revenue growth slowed, reflecting broader sector doubts about AI demand.