Intel and SK Hynix React to US Manufacturing Rumors
Rumors of a US manufacturing partnership have lifted Intel and SK Hynix shares, though the companies stress no formal deal exists. Recent earnings show Intel’s data center recovery and SK Hynix’s high-bandwidth memory expansion driving the current momentum.
Intel and SK Hynix shares rose this week on reports that the two firms are exploring ways to manufacture memory chips in the United States. The speculation centers on Intel’s delayed Ohio complex, with scenarios ranging from SK Hynix leasing capacity to a broader joint venture involving cloud providers. However, SK Hynix explicitly stated that no specific plans or arrangements have been finalized, and no formal partnership has been announced.
Since the reports emerged on Wednesday, Intel stock has surged approximately 10%, while SK Hynix has climbed about 5%. This recent spike adds to a broader trend where SK Hynix has gained 20% since its July Nasdaq debut, outpacing Intel’s 4% increase over the same period. The market reaction highlights investor interest in how the two companies might integrate their manufacturing footprints in the US.
Intel's Data Center Revenue Rebound
Intel’s financial performance is improving independent of any potential SK Hynix agreement. In the second quarter, revenue jumped 25% year over year to $16.1 billion. This growth was driven largely by the Data Center and AI segment, which saw revenue surge 59% to $6.3 billion. Intel Foundry revenue also increased by 31%, indicating traction in its manufacturing business.
Management has guided third-quarter sales to between $15.8 billion and $16.8 billion, representing a 15% increase. According to data cited by GN stocks/chips, consensus estimates project fiscal 2026 revenue to rise nearly 18%, followed by a 14% increase in fiscal 2027 to $70.89 billion. Earnings per share are expected to recover significantly, with fiscal 2026 EPS forecast at $1.50 compared to $0.42 in the prior year.
SK Hynix Expands High-Bandwidth Memory
SK Hynix maintains a strong position in high-bandwidth memory, a critical component for AI accelerators used by customers like Nvidia and Microsoft. The company also supplies memory products to Apple, providing exposure to another major technology client. SK Hynix reported record second-quarter performance amid robust AI demand and has begun mass shipments of its latest HBM4 generation.
The company expects HBM4 production to ramp up through the second half of the year. Additionally, SK Hynix has shipped samples of HBM4E, an enhanced next-generation version, while investing aggressively to expand its AI memory capacity. This focus on high-value AI components underpins the company’s recent stock performance.
