Shares of SK Hynix soared over 9% on Thursday following the company’s announcement of mass production of its cutting-edge high-bandwidth memory (HBM) chips, positioning itself to capitalize on the surging demand driven by the artificial intelligence (AI) sector.
As the world’s second-largest memory chip manufacturer, SK Hynix outperformed its larger competitor, Samsung Electronics, whose shares climbed 4% amid a positive outlook for AI demand influenced by Micron’s recent announcements.
The South Korean firm proudly introduced its latest-generation HBM product, HBM3E, which features 12 layers and offers 50% greater capacity than the previous eight-layer models. As the primary supplier of HBM chips to Nvidia, SK Hynix plans to deliver these innovative products to unnamed customers by the end of the year.
The competition in the HBM chip market is intensifying, with these chips playing a crucial role in processing vast datasets necessary for training AI technologies, particularly for Nvidia’s graphics processing units. In July, Samsung announced its intentions to supply production-ready HBM3E units in the latter half of this year, while Micron recently stated it was shipping HBM3E units for qualification to key industry partners.
In broader market trends, the benchmark South Korean stock index rose 1.7%.
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