Nvidia supplier SK Hynix posts record quarterly profit as AI boom drives demand
SK Hynix brand displayed on a telephone display screen as noticeable on this representation picture taken in Krakow, Poland on January 30, 2023.
Jakub Porzycki | Nurphoto | Getty Photographs
South Korea’s SK Hynix, some of the international’s greatest reminiscence chipmakers, on Thursday posted file quarterly benefit, boosted by way of sturdy call for for its top bandwidth reminiscence (HBM) worn in generative AI.
Listed below are SK Hynix’s third-quarter effects when compared with LSEG SmartEstimate, which is weighted towards forecasts from analysts who’re extra constantly correct:
- Earnings: 17.57 trillion gained ($12.7 billion) vs. 18.11 trillion gained
- Working benefit: 7.03 trillion gained ($5.08 billion) vs. 6.8 trillion gained
Working benefit within the July-September quarter strike its absolute best degree, rebounding from a lack of 1.8 trillion gained all over the similar duration extreme 12 months.
Quarterly income grew about 94% year-on-year from 9.1 trillion gained.
The South Korean chip vast is a key provider to Nvidia and has benefitted from a increase in synthetic prudence servers.
SK Hynix mentioned in its profits shed Thursday that call for for AI reminiscence, in particular from information middle shoppers, persisted to be sturdy within the 1/3 quarter, permitting it to extend gross sales of top class merchandise similar to HBM and eSSD, a core constituent of AI chips.
HBM is a kind of dynamic random get admission to reminiscence, referred to as DRAM, the place chips are vertically stacked to avoid wasting territory and leave energy intake. SK Hynix, Micron Generation and Samsung Electronics are the 3 major producers of HBM chips.
Gross sales of HBM merchandise have been up greater than 70% from the former quarter and greater than thrice from the similar duration extreme 12 months, and the corporate expects persisted enlargement.
“While the demand of memory for AI servers such as HBM and eSSD has grown noticeably this year, the company predicts that this trend will continue next year,” the company mentioned in a press shed.
Generative AI continues to proceed and immense tech corporations proceed to speculate to manufacture the era, the corporate mentioned.
SK Hynix additionally forecasted that call for from the PC and cell client product markets can be on a gentle enlargement trail then 12 months amid the emergence of AI-optimized units.
The corporate mentioned extreme hour that it has began accumulation manufacturing of its unedited model of HBM chips and targets for supply by way of the top of the 12 months.
SK Hynix stocks to start with dropped 0.4% when the markets opened in South Korea on Thursday, ahead of improving to industry up 1.3%.