Nvidia provider SK Hynix reverses losses in first quarter on AI demand | USAEMALL.com

South Korean reminiscence chipmaker SK Hynix on Thursday reported a internet revenue of 1.92 trillion South Korean gained ($1.39 billion) within the first quarter, reversing a lack of 2.58 trillion gained logged in the identical interval a 12 months in the past.

This was the primary constructive revenue recorded for the reason that third quarter of 2022, LSEG information confirmed. SK Hynix posted internet losses for 5 consecutive quarters from a hunch within the reminiscence chip market.

Revenue within the first quarter stood at 12.43 trillion gained, a 144% enhance from a 12 months in the past. This was the best income logged since second quarter 2022, in keeping with LSEG information.

SK Hynix attributed the robust efficiency to an “increase in the sales of AI server products backed by its leadership in AI memory technology including high-bandwidth memory” in addition to efforts to drive profitability.

SK Hynix is the world’s second-largest reminiscence chipmaker after Samsung Electronics and provides high-bandwidth reminiscence chips catering to AI chipsets for firms like Nvidia.

The explosive demand for AI chipsets boosted the high-end reminiscence chip market, massively benefiting gamers like SK Hynix and Samsung Electronics.

Large language fashions similar to ChatGPT – which prompted AI adoption to skyrocket – require a number of high-performance reminiscence chips as such chips enable these fashions to recollect particulars from previous conversations and person preferences so as to generate humanlike responses.

To meet AI reminiscence demand, the agency stated it plans to extend provide of HBM3E – the newest technology of high-bandwidth reminiscence for AI. SK Hynix stated it should additionally introduce 32GB Double Data Rate 5 merchandise this 12 months to strengthen its management within the high-capacity server DRAM market.

“We will continue to work towards improving our financial results by providing the industry’s best performing products at a right time and maintaining the profitability-first commitment,” stated Chief Financial Officer Kim Woohyun.

The agency tasks the general reminiscence market to develop steadily within the coming months amid rising demand for AI reminiscence, whereas the traditional DRAM market begins recovering from the second half of 2024.

Pandemic-induced demand for client electronics led firms to stockpile reminiscence chips. But macroeconomic uncertainties similar to inflation prompted shoppers to chop again on purchases of such client items, driving down demand and costs for reminiscence chips.

To tackle the surplus inventories, firms like SK Hynix minimize manufacturing of its reminiscence chips.

SK Hynix shares slid greater than 4% on Thursday morning, although within the final one 12 months, they’ve jumped greater than 100%.

The agency has made latest bulletins to fulfill the AI demand.

The agency on Wednesday stated it plans to construct a brand new fab in South Korea, with an estimated completion date set for November 2025, to extend manufacturing of the next-generation DRAM together with HBM to seize the proliferating demand for AI chips.

Total funding would quantity to greater than 20 trillion gained in the long run, SK Hynix stated.

SK Hynix can also be partnering with TSMC, the world’s largest contract chip producer, to construct high-bandwidth reminiscence 4 chips and next-generation packaging know-how. Mass manufacturing of the HBM4 chips is anticipated to start out from 2026.

SK Hynix will leverage on TSMC’s modern processes, in keeping with an April 19 assertion.