Nvidia’s Urgent Request Sparks Surge in SK Hynix Shares
A significant development in the tech industry sent shares of SK Hynix soaring on Monday. The South Korean company, a key partner of Nvidia, revealed that the US-based chipmaker is seeking to expedite the supply of its next-generation, high-bandwidth memory chips. This urgent request has sparked optimism among investors, driving SK Hynix’s shares up by nearly 6.5%.
A Critical Component for AI Chips
The high-bandwidth memory chips in question are a crucial component for Nvidia’s artificial intelligence chips. According to SK Group chairman Chey Tae-won, Nvidia CEO Jensen Huang has asked the company to move up the supply of its HBM4 chips by six months. This acceleration is a testament to the ongoing struggle to meet chip demand, a challenge that both companies are working to overcome.
Collaboration and Innovation
Chey emphasized that both Nvidia and SK Hynix are aligned on the HBM4 schedule, ensuring a smoother supply chain. Moreover, SK Hynix has unveiled a 16-layer HBM3E chip, which is set to be released to customers early next year. Looking ahead, the company plans to launch its next-generation HBM5 and HBM5E chips between 2028 and 2030.
Record-Breaking Performance
SK Hynix has been experiencing unprecedented success, with record revenue, operating profit, and net profit in the third quarter. This achievement solidifies the company’s position as the world’s leading AI memory company. According to Kim Woohyun, chief financial officer at SK Hynix, the company will continue to prioritize profitability while adapting to market demand.
A Strong Partnership
The partnership between Nvidia and SK Hynix is built on a foundation of mutual understanding and cooperation. As the demand for AI technology continues to grow, this collaboration will play a critical role in driving innovation and meeting the needs of the industry. With SK Hynix’s shares up 37.1% this year, investors are optimistic about the future of this partnership.
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