Nvidia Deal Sparks Sharp Drop in SK Hynix Stock Amid AI Demand Frenzy

SK Hynix Inc., the South Korean memory chip manufacturer, saw its stock drop by 9-9.6% on August 12, 2026, despite a massive partnership with Nvidia worth over $500B in AI infrastructure initiatives.

The company has been experiencing strong demand expectations for its AI memory products, which led to a 3.64% increase in its stock price earlier this year.

However, the recent news of the Nvidia partnership and expected long-term US tech supply contracts did not boost investor optimism as expected. The stock dropped despite management's view that a global memory chip shortage will persist beyond 2030 due to AI demand outrunning supply.