The plan is for Hynix to lease a big chunk of Intel's Ohio plant or they team up with Intel & Big Tech hyperscalers to form a huge memory producing joint venture.
Investors are faced with a dilemma: to buy Intel now or wait for the actual deal to be signed:
The Believers: Buy now
If Hynix moves into Intel's Ohio plant, it validates Intel's manufacturing capabilities. Waiting for signature may mean missing out on Intel's valuation re-rating.
The Realists: Waiting until the contract is signed
Shortly after the rumour broke, Hynix said that nothing has been finalised. This deal needs the approval of S Korea's authorities.
My Take: I would wait until the order has been signed. I prefer to invest in $VanEck Semiconductor ETF(SMH)$ instead.
Modify on 2026-09-18 09:48
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- fizzikΒ·09-18 20:13TOPSMH probably stays cleaner here. The bigger wrinkle is whether this shifts capacity competition across US fabs before anything is actually signed1Report
- buythedipΒ·09-18 20:13TOPEven if this gets signed, Ohio capex and depreciation do not magically fix foundry losses. Lease income alone feels way too thin for a real rerating1Report