Even so, there is some speculation that the AI investment cycle is approaching a turning point, which has been responsible for the recent drag on chip shares.
Concerns have mounted following reports that Apple is seeking to diversify parts of its semiconductor supply chain to include Chinese suppliers, and that Meta is looking to commercialize excess AI computing capacity.
Industry executives and analysts, however, argue that memory supply continues to lag demand.
Nvidia Chief Executive Jensen Huang said last month that shortages of AI memory would continue for several years due to strong demand, adding that SK Hynix would remain the company's largest memory supplier.
UBS likewise expects the global DRAM industry to remain undersupplied until at least the second quarter of 2028.
Similarly, Bank of America remains constructive on the AI investment cycle, estimating that global hyperscaler capital expenditure will reach about $851 billion this year and $1.15 trillion next year, supported by strong cloud backlogs, improving returns on AI investment and growing demand for compute-intensive AI applications.
The bank said the roughly $244 billion raised by leading hyperscalers this year largely reflects balance-sheet optimization rather than signs of funding stress, arguing that capital remains readily available to support continued infrastructure investment.
The optimistic view was reinforced on Thursday, when Micron said it plans to invest more than $250 billion in the United States through 2035, up from the $200 billion plan it announced last year, citing surging demand for memory chips in the AI era and President Donald Trump's push to strengthen domestic semiconductor manufacturing.
SK Hynix has been one of the biggest beneficiaries of the AI boom, thanks to its big bets on HBM, once scorned but now seen as canny. Operating profit hit a record 47 trillion won ($31 billion) in 2025, double what it made the year before and coming back from an operating loss in 2023.
Momentum has continued into this year. The April-June quarter is likely to be even more eye-popping, with an LSEG SmartEstimate putting operating profit at 65.5 trillion won.
The company's shares have also soared. While concerns about the sustainability of the AI share rally have resulted in an 18% slide for SK Hynix shares in the past two weeks, they are up more than sevenfold over the past 12 months.
