SK Hynix Negotiates Landmark Memory Chip Manufacturing Deal With Intel

SK Hynix shares rose 5.6% in Korea and 4.6% in U.S. premarket trading after announcing potential U.S. manufacturing expansions. Solidigm, its U.S. unit, is evaluating a NAND flash plant in New York, while SK Hynix discusses memory chip production with Intel in Ohio. The company leads the HBM market with 50% share and is building a $4B Indiana complex. Analysts rate SKHY a Strong Buy with a $249.70 price target, implying 36.5% upside.

Semiconductor stocks Nvidia, AMD, Intel, and Broadcom are rising in pre-market trading due to strong AI demand signals from Nvidia CEO Jensen Huang. Nvidia expects to double chip sales by 2027, while AMD and Intel benefit from CPU/GPU demand and supply constraints. Broadcom also sees strong AI infrastructure demand. Analysts maintain positive ratings for these companies, with Nvidia, AMD, and Broadcom having 'Strong Buy' consensus.

Asian shares rose Friday, led by tech stocks, as SK Hynix and Intel reportedly discussed joint memory chip production in Ohio. Gold prices climbed over 1% to near $4,400/oz, rebounding from a three-day drop, supported by lower oil prices and a weaker dollar.

Intel (INTC) shares rose after reports of preliminary talks with SK hynix (SKHY) to manufacture memory chips in Ohio. A deal could monetize idle capacity and align with U.S. supply chain incentives. Intel's broader turnaround includes price hikes and asset monetization. Analysts rate INTC as 'Moderate Buy' with a $114 price target, suggesting 14% upside.

Nvidia shares rose 2.5% on Thursday, closing at $219.34, as tech stocks led a Wall Street rebound. The Nasdaq Composite gained 1.7%, its strongest day since August 4. The Fed's rate hike to 3.75%-4% initially pressured shares, but yields fell below 5%. Other tech companies like AMD and Intel also saw gains. Investors focus on AI spending and earnings, with Nvidia central to the debate.

SK Hynix is in early talks with Intel about leasing or jointly operating Intel's Ohio factory for memory-chip production. Intel's stock rose on the news, reflecting potential benefits for its foundry business. Intel reported Q2 revenue of $16.1B, up 25% YoY, with strong Data Center and AI growth, but also an $11B net loss. The outcome of the discussions remains uncertain.