Samsung’s bid to supply high-bandwidth memory (HBM3E) to NVIDIA this year has hit a major snag. According to reports, Samsung is facing significant performance hurdles, leaving SK Hynix as the dominant player in the HBM market.
Results for: Memory Chips
SK Hynix, a leading memory chip manufacturer and key supplier to Nvidia, has announced record-breaking quarterly profits fueled by the surging demand for artificial intelligence (AI) technologies. The South Korean company saw a significant increase in revenue and profit, driven by strong sales of premium memory products like HBM and eSSD, which cater to the booming AI server market.
Samsung Electronics, a leading tech giant, has issued a warning regarding a substantial decline in its third-quarter profits. The company attributes this to various factors, including one-time costs and increased competition from Chinese rivals in the memory chip market.
SK Hynix shares surged over 9% on Thursday after the company announced the start of mass production for its new HBM3E memory chips. These advanced chips offer 50% more capacity than previous versions, putting SK Hynix at the forefront of the AI memory market. This positive news comes amidst recent stock volatility and signals a strong future for the company.
Micron Technology’s strong quarterly earnings, driven by robust AI demand, have sent ripples through the chip market. The company’s forecast for improved profitability in 2025 has sparked a surge in share prices, with Micron stock leading the charge with a 13.2% jump. Other memory chip giants like Western Digital and Lam Research are also seeing significant gains.
Micron Technology, Inc. (MU) is set to release its fourth-quarter earnings after the market closes on Wednesday, September 25th. Analysts anticipate strong revenue growth and a return to profitability, driven by continued demand for memory chips. However, recent analyst ratings have been mixed, with some maintaining bullish views and others taking a more cautious approach.
SK Hynix, a key supplier of high-bandwidth memory chips to NVIDIA, saw its stock plummet by over 6% after Morgan Stanley downgraded the company, citing concerns about the deteriorating memory market. The analysts believe Samsung offers better quality and value, leaving SK Hynix in a tough spot for revenue growth and margins.
South Korea’s memory chip exports to Taiwan surged over 225% in the first half of 2023, driven by the booming demand for AI GPUs and accelerators, which rely heavily on HBM memory chips. SK hynix’s HBM supply to NVIDIA is the primary driver of this surge, solidifying South Korea’s position as a key player in the burgeoning AI industry.
Samsung Electronics has reported a substantial increase in its operating profit for the first quarter of 2024, driven by soaring demand for its servers, memory chips, and storage solutions used in artificial intelligence (AI) applications. The company’s total revenue rose by 12.8% to KRW 71.2 trillion ($52.2 billion), while net profit surged by 330% to KRW 6.75 trillion ($4.88 billion) compared to the same period last year.
SK Hynix, the second-largest memory chipmaker globally, reported a net profit of 1.92 trillion South Korean won ($1.39 billion) in the first quarter, reversing a loss of 2.58 trillion won logged in the same period a year ago. This marks the first positive income recorded since the third quarter of 2022. The strong performance was attributed to increased sales of AI server products and high-bandwidth memory (HBM), which caters to the surging demand for AI chipsets. SK Hynix plans to increase supply of HBM3E and introduce 32GB DDR5 products this year to meet the growing demand for AI memory. Despite a 4% slide in share prices on Thursday morning, SK Hynix shares have jumped over 100% in the past year.