SK hynix (SKHY) shares surged 5.60% in the night session, driven by a confluence of positive catalysts including a landmark supply agreement with NVIDIA, robust institutional buying, and expectations of record-breaking quarterly earnings.

The rally was sparked by the announcement of a massive deal with NVIDIA, valued at up to $500 billion, which secures a critical supply of high-bandwidth memory (HBM) for the chipmaker's advanced AI processors. The partnership also includes plans for a large-scale data center and co-development of next-generation AI memory, underscoring SK hynix's leadership in the HBM market amid the global AI boom.

Adding to the momentum, South Korea's National Pension Service (NPS) net purchased 425.8 billion won worth of SK hynix shares in July, marking the second consecutive month as the pension fund's top holding increase. This reversal from earlier selling pressure alleviated concerns of a liquidity shock and demonstrated strong institutional confidence in the company's AI-driven growth prospects.

Investor sentiment was further buoyed by expectations 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.