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As large AI models are on the rise, the same is Nvidia’s supplier, SK Hynix. The company has just reported its best quarter.
SK Hynix, the South Korean memory chipmaker, announced a dramatic financial turnaround. After suffering losses for five consecutive quarters, its first-quarter net profit comprised 1.92 trillion South Korean won ($1.39 billion).
This rebound is primarily attributed to a surge in sales of AI server products, particularly those utilizing its high-bandwidth memory technology. It has been critical in meeting the increasing demands of AI chipsets used by companies like Nvidia.
The company’s revenue reached 12.43 trillion won, marking a 144% increase from the previous year and the highest since the second quarter of 2022.
This financial recovery is spurred by the booming AI sector, including large language models like ChatGPT, which require extensive memory capabilities that SK Hynix’s products provide.
SK Hynix plans significant investments to enhance its production capabilities, including constructing a new fabrication plant in South Korea and developing next-generation DRAM and high-bandwidth memory solutions. These efforts collaborate with TSMC to produce HBM4 chips and advanced packaging technologies, with mass production scheduled to begin in 2026.
Big news!🎉
We're thrilled to announce an #MOU between @TSMC and @SKhynix for co-producing #HBM4 and enhancing packaging technologies.
This partnership aims to boost #AI chip efficiency and provide tailored memory solutions.Curious? Click the link below!https://t.co/UgGvHS9NHp pic.twitter.com/rG4rHfsCUE
— SK hynix (@SKhynix) April 19, 2024
Despite recent challenges, SK Hynix shares have significantly increased, doubling in value over the past year, as the company positions itself to capitalize on the growing AI market.
