On Monday, November 4, the value of SK Hynix shares showed an increase of 6.5%.
The mentioned rise in the price of securities was recorded against the background of the fact that the specified company announced a next-generation memory chip. Also, the impact on the corresponding dynamic was the fact that the chair of the parent company stated that SK Hynix accelerated the supply of a key product for US Nvidia.
SK Hynix is a South Korea-based semiconductor firm. The headquarters of this company is located in the city of Icheon.
During a speech at the firm’s event on Monday, Chey Tae-won, chairman of SK Group, told the story that Nvidia chief executive officer Jensen Huang asked him if it is possible to move the supply of high-bandwidth memory chips called HBM4 forward by six months. Chey Tae-won, according to him, gave a positive answer to the relevant question.
It is worth noting that Nvidia is currently one of the main beneficiaries of the so-called artificial intelligence boom. This company develops graphics processing units, which are necessary for training and ensuring the process of subsequent operation of machine intelligence systems. In the summer of the current year, Nvidia’s market capitalization crossed a kind of historical mark of $3 trillion. The high-intensity business growth of this company continues.
As noted by the media, it is not yet known whether SK Hynix will make changes to the timeline of its production activities compared to the already formed plan for the second half of next year against the background of a request from Nvidia.
High-bandwidth memory chips are the main components of microcircuits of a company headed by Jensen Huang. It’s worth noting that Nvidia’s customers are the world’s largest technology giants. The mentioned companies need appropriate products to develop the most powerful artificial intelligence models and apps powered by AI.
SK Hynix is a major supplier to Nvidia. It’s worth noting that the record level of consumer demand for the products of the company, led by Jensen Huang, helped the South Korea-based firm achieve rapid growth and record earnings this year. SK Hynix’s revenue for the third quarter of the current year was fixed at $12.7 billion. This indicator showed an increase of approximately 94% compared to the result for the same period in 2023.
The value of SK Hynix shares has risen by about 36% since the beginning of the current year.
On Monday, the company introduced a new 16-layer high-bandwidth memory chip. The firm announced that the microcircuits of the new model will be provided to customers early next year. It is worth noting that high-bandwidth memory is a type of dynamic random access memory, known as DRAM. In this case, chips are vertically stacked to save space and reduce power consumption. Adding more layers can theoretically increase the ability to handle complex artificial intelligence apps.
The aggressive roadmap from SK Hynix is related to the fact that its competitor, Samsung, which has fallen behind in high-bandwidth memory, is currently making efforts to regain leadership in the relevant manufacturing sector and obtain certification of its most advanced chips for use by Nvidia. It is worth noting that this is generally a natural aspiration. Supplying products to one of the main beneficiaries of artificial intelligence is obviously a promising activity with a practically guaranteed positive financial result.
It’s also worth mentioning that Samsung said last week that it had made progress in a supply deal with an unidentified major customer after suffering from delays. Some media outlets suggest that in this case, interaction with Nvidia is implied. At the same time, the relevant assumptions have not yet been commented on at the official level.
It is also known that Samsung plans to produce the next generation of high-bandwidth memory products in the second half of 2025. The realization of the relevant intention will likely improve the company’s market position and financial performance of its activities.
As we have reported earlier, SK Hynix Wins US Grants.
