SK Hynix shares have rallied through August on a mix of a major Nvidia partnership and investor bets on a new shareholder return plan, extending a run that has made the chipmaker one of this year’s most closely watched AI plays.

Nvidia and South Korea’s SK Group, which includes SK hynix, agreed to a partnership worth more than $500 billion to develop next-generation memory chips, according to reporting reviewed this week. The deal covers high-bandwidth memory built for Nvidia’s training-class GPUs and other AI hardware, tying SK hynix more tightly to Nvidia’s supply chain.

Bloomberg reported on August 5 that SK Hynix shares climbed as investors positioned for a shareholder return plan from the company, adding a second catalyst on top of the AI memory news. The stock has swung sharply through the month, sliding in early August before recovering much of the ground by mid-month.

Reports of fresh investment interest from Singapore’s Temasek added to the momentum, with traders reading the fund’s involvement as a vote of confidence in Korean memory makers at a moment when AI demand is reshaping the chip industry. SK hynix and rival Samsung have both drawn similar attention as hyperscalers race to secure memory supply for AI data centers.

Wall Street’s read on the stock remains firmly positive. Analyst coverage tracked this month shows an overwhelming tilt toward buy ratings, with essentially no sell recommendations on the name, reflecting confidence that AI-driven memory demand has further room to run.

SK hynix has become one of two dominant suppliers of high-bandwidth memory, the specialized chips that sit alongside AI processors from Nvidia and others. That position has turned routine earnings updates and partnership announcements into market-moving events, and August’s run of news has been no exception.

The company’s next scheduled earnings update will give investors a clearer read on how quickly the Nvidia partnership translates into orders, and whether the shareholder return plan investors are betting on actually materializes in the coming months.