CNBC
27 Oct 2026, 23:34 UTC · 1h ago
SK Hynix third-quarter profit sharply beats estimates on AI memory boost
Impact · against what's priced in
SK Hynix's massive earnings beat suggests AI memory margins are expanding faster than expected, providing a strong read-through for NVDA's hardware cycle. While the market is currently skeptical of Nvidia's long-term revenue escalation, the sequential growth at its primary HBM supplier supports the bull case for accelerating data center spending.
- NVDA+0.30
Challenges what's priced in
- The price assumes
The revenue-per-gigawatt escalation from $18 billion (Hopper) to $40 billion (Vera Rubin), which underpins the claim that data center spending will accelerate rather than plateau.
The substantial sequential growth (31.9% revenue, 37.6% profit) at its key HBM supplier suggests AI infrastructure spending is accelerating, supporting the revenue escalation claims the market currently refuses to pay for.
