SK Hynix Stock Hits Record After Next-Gen Chip Breakthrough
The company said it is ready to mass-produce a new generation of high-bandwidth memory chips
Shares of Nvidia supplier SK Hynix 000660 7.00%increase; green up pointing triangle hit a record high, after the South Korean company said it is ready to mass-produce a new generation of high-bandwidth memory chips.
Early Friday, SK Hynix said it has completed the development of the world’s first HBM4. The company said it is ready to supply the next-generation memory product for ultra-high performance artificial intelligence to customers.
The stock rose as much as 6.5% to touch 327,000 South Korean won a share, equivalent to $235.31.
The company’s latest achievement will intensify competition among memory-chip makers vying to gain market share in the AI space, which is experiencing increasing demand from companies like Google, Amazon and Meta.
On Wednesday, Oracle said it signed several high value AI contracts in the quarter ended Aug. 31 and expects more such deals in the next few months. Chief Executive Safra Catz told analysts that it had signed contracts with three different customers during the quarter.
“With recent dramatic increase in AI demand and data processing, the needs for high bandwidth memory for faster system speed are surging,” Hynix said.
The company expects to improve AI service performance by up to 69% when the product is applied, which will solve the data bottleneck and significantly reduce data-center power costs.
“HBM4, a symbolic turning point beyond the AI infrastructure limitations, will be a core product for overcoming technological challenges,” said Justin Kim, president and head of AI Infra at SK Hynix.
He said that the company will grow into a full-stack AI memory provider by supplying high-quality, diverse memory products that meet the performance requirements of the AI era in a timely manner.