SK hynix shares soared 6.24% in pre-market trading on Monday, driven by a powerful combination of catalysts including a landmark supply agreement with NVIDIA, expectations of record-breaking second-quarter earnings, and significant one-off investment gains from its stake in Japan's Kioxia.

The rally was primarily fueled by the announcement of a massive partnership with NVIDIA, valued at up to $500 billion, which secures a critical supply of high-bandwidth memory for the chipmaker's advanced AI processors. The deal also encompasses plans for a large-scale data center and co-development of next-generation AI memory, underscoring SK hynix's leadership in the HBM market. Additionally, Meritz Securities analyst Kim Sun-woo estimates that SK hynix's April-June pretax profit will exceed 10 trillion won, comprising a 6.01 trillion won operating profit and a 4.16 trillion won one-off investment gain linked to its Kioxia stake held via Bain Capital. This comes as South Korea's National Pension Service continued its robust institutional buying, net purchasing 425.8 billion won worth of SK hynix shares in July, marking the second consecutive month as the pension fund's top holding increase.

Investor sentiment was further buoyed by consensus estimates that SK hynix's second-quarter operating profit will surge nearly 600% year-over-year to a record 64.09 trillion won, with revenue projected at 84.06 trillion won. The operating margin is expected to reach 75%-77%, potentially surpassing TSMC for the third straight quarter, as the AI memory supercycle continues to drive unprecedented demand. The company is scheduled to report its official results on July 29.