Nvidia Taps TSMC's 3nm Node for Next-Gen Memory as SK Hynix Shares Wobble

Nvidia has asked SK hynix, Samsung Electronics and Micron to build future NVHBM base dies on TSMC's 3-nanometer process, according to media reports from yesterday, while pushing for standardisation of core dies on the 1c DRAM node. None of the companies involved has officially confirmed the move.

The request, if formalised, would deepen SK hynix's reliance on the Taiwanese foundry at a moment when the memory maker is already navigating a sharp market downturn. For the Korean chipmaker, a 3nm mandate would raise the strategic stakes of its TSMC relationship considerably.

Goldman stays bullish as foreign money heads for the door

Goldman Sachs took a more constructive view on 16 October, naming SK hynix among its preferred names in the memory segment amid the sector-wide selloff. The US investment bank argued that investors are overestimating how quickly Chinese rivals can close the technology gap. It tempered that call, however, warning that near-term catalysts for a decisive turnaround are scarce.

The stock's recent performance underscores the challenge. In today's session SK hynix edged up 0.4% to 1,277,000.00 KRW, a modest stabilisation after a bruising run that has knocked 20% off the share price within seven days. Earlier in the day the stock had fallen 2.0% to 1,246,000.00 KRW before recovering from its lows, with foreign and institutional buyers stepping in during Seoul trading to stem the slide, according to media reports.

The retreat has been severe in scope. Foreign investors have offloaded SK hynix shares worth a combined 5.3565 trillion won, and the stock now sits 58% below its 52-week high.

AI funding doubts ripple through Asia

The pressure originates far from Seoul. Worries about the sustainability of debt-financed artificial intelligence spending, together with concerns over rising financing costs, have weighed on technology names globally. Investors are questioning how quickly the massive outlays on AI infrastructure will translate into returns for operators, and the prospect of higher interest burdens is making them more cautious still.

Weakness in US tech — including Micron, Broadcom and AMD — spilled over into Asian semiconductor heavyweights on Monday, compounding the downward pressure on Korean chip names.

China is adding a second front. Reports of technological advances at ChangXin Memory Technologies have fuelled fears of intensifying competition for established memory producers over the medium term. Defending their lead in complex memory architectures is becoming a priority for SK hynix and its peers.

Building out the technology stack

SK hynix is not standing still. At the OCP Global Summit the company showcased memory-centric server systems and concepts for modern AI memory architectures, alongside research on optimising 3D FeNAND technology for AI computing workloads. How quickly the manufacturer responds to standardisation pushes from major customers like Nvidia — and what changes that requires on its production lines — is likely to stay front and centre for market participants in the months ahead.

Whether that technological groundwork is enough to steady the share price will depend largely on the global investment appetite of the big technology companies.