Broadcom’s AI Misstep Triggers 10% Rout in SK Hynix Even as Margins Hit 72% and US IPO Looms

SK Hynix shares fell nearly 10% after Broadcom's weak AI revenue forecast, but the memory giant pushes ahead with a $14B ADR listing and major DRAM expansion for AI data centers.

The same week SK Hynix touched a fresh all-time high ended with a brutal reckoning. The South Korean memory giant saw its shares plunge 9.92% to 2,070,000 won on Friday, dragged down by a dour revenue forecast from US chipmaker Broadcom. The PHLX Semiconductor Index cratered 10.3% in a single session as investors rushed to lock in profits in a market many believed was overextended.

Broadcom projected AI-related revenue of $16 billion for 2026, falling short of analyst expectations of $17.2 billion. The gap was just enough to trigger a sector-wide selloff. On a weekly basis, SK Hynix shed roughly 11% of its value. But the rout does little to diminish what has been a stunning run: the stock still boasts a year-to-date gain of 205.76% and sits 14% below the 52-week high of 2,407,000 won. The relative strength index has eased to 59.8, exiting overbought territory.

Even as the market sold off, management is pressing ahead with a major strategic pivot to the United States. The company has launched a confidential ADR listing process with the Securities and Exchange Commission, with plans to raise up to $14 billion. The feedback has been “overwhelmingly positive,” according to the company, and the aim is to draw in large US institutional investors. The fresh funds will underwrite a dramatic expansion: SK Hynix intends to double its DRAM wafer capacity from 550,000 to roughly one million units per month by the early 2030s, with a focus on high-performance memory for AI data centers.

The blueprint relies on two new production hubs. The Yongin cluster is slated to contribute about 360,000 wafers per month by 2030, with the first phase starting operations in early 2027. Meanwhile, the Cheongju M15X fab will ramp up to 80,000 wafers by 2027. All this comes on top of an already dominant position in the high-bandwidth memory (HBM) market. SK Hynix controlled 58% of the global HBM segment in the first quarter of 2026, a period that saw its operating profit margin hit an unprecedented 72%. Quarterly revenue breached 50 trillion won for the first time, fueled by soaring contract prices for DRAM and NAND flash.

That crystal-clear competitive advantage has won a critical endorsement from Nvidia. CEO Jensen Huang confirmed during a visit to South Korea that SK Hynix’s HBM4 memory is qualified for Nvidia’s upcoming “Vera Rubin” platform, cementing their partnership well into the next product cycle. Goldman Sachs responded by lifting its 2028 operating profit forecast for SK Hynix by 24%, citing sustained HBM demand and potential LPDDR shortages from 2027 onward.

Technical analysts point to the 50-day moving average of roughly 1.46 million won as a key support level; holding above it would keep the long-term uptrend intact. On the retail front, South Korean individual investors are piling into a risky bet, buying 2x leveraged single-stock products tied to SK Hynix in hopes of a swift rebound. Trading resumes Monday, June 8, with the market watching whether the Broadcom shock was a buying opportunity or the start of a deeper correction.