SK Hynix CEO Warns of Worst-Ever Memory Shortage in 2027, Boosting NVIDIA's Supply Chain Outlook
NVDA sits 30% above its 52-week low of $161.61.
Summary
SK Hynix CEO Kwak Noh-jung forecasts the worst memory supply shortage in industry history for 2027, with demand exceeding supply capacity beyond 2030. As NVIDIA's key HBM supplier, this signals sustained tightness in AI-critical memory, reinforcing NVIDIA's pricing power and growth trajectory. The warning came as SK Hynix ADRs surged 14.8% on their Nasdaq debut, reflecting market recognition of its pivotal AI role. This follows NVIDIA's record Q1 FY27 revenue of $81.6B and $80B buyback authorization, underscoring the AI infrastructure boom's durability. The supply constraints may accelerate NVIDIA's diversification efforts and long-term supplier agreements.
At the time of this announcement, NVDA was trading at $210.27 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.1T. The 52-week trading range was $161.61 to $236.54. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.