SK Hynix Achieves Record Profit Driven by AI Growth

Wednesday, 24 July 2024, 23:13

SK Hynix has reached its highest quarterly profit since 2018, fueled by surging demand for AI chips, particularly high bandwidth memory (HBM) essential for generative AI technologies. The company's Head of DRAM Marketing, Kim Kyu Hyun, indicated expectations for HBM shipments to more than double in the coming year. However, despite this promising outlook, SK Hynix shares experienced an 8.4% decline in morning trading, reflecting broader market trends and disappointing tech earnings from major companies like Nvidia.
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SK Hynix Achieves Record Profit Driven by AI Growth

Record Profit Amid Rising AI Demand

SEOUL (Reuters) - South Korea's SK Hynix reported its highest quarterly profit in six years, attributed to the ongoing demand for AI chips. The latest growth is driven by the need for high bandwidth memory (HBM), crucial for generative AI applications.

Positive Outlook for HBM Shipments

According to Kim Kyu Hyun, the Head of DRAM Marketing, the company anticipates that next year's HBM shipments will more than double this year's performance.

Market Reaction

  • Despite strong profits, SK Hynix shares fell by 8.4% during morning trading.
  • This decline mirrored the broader market trends, with Nvidia and other tech companies experiencing poor earnings.

In conclusion, while SK Hynix is poised for significant growth in the AI chip sector, external market pressures have impacted its stock performance.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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