SK Hynix Supplies More Than Half the World's HBM Memory. Its Stock Costs Under 4 Times Next Year's Earnings.

SK Hynix (SKHY -1.57%) sells more than half of the world's high-bandwidth memory (HBM) -- the specialized chips that feed data to the processors running artificial intelligence (AI) models. The earnings the market doubtsThe memory maker's second quarter, reported at the end of July, was extraordinary. And first-half revenue crossed 100 trillion won for the first time in the company's history. SK Hynix said it has finalized long-term agreements with about 10 customers. And in late July, Nvidia and SK Hynix's parent, SK Group, announced a partnership worth more than $500 billion, with a long-term AI memory supply agreement for SK Hynix inside it.