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SK Hynix Inc.’s shares dropped after its quarterly results fell short of expectations, with investors growing concerned about stagnant smartphone demand and doubts over AI spending in 2025. Despite a 30% rally this year, the stock fell more than 2%, reflecting investors’ exit from bets on the company’s growth.
NVIDIA Corp., which relies heavily on HBM chips for AI training, reported a record $8.08 trillion won profit in its high-bandwidth memory division, outpacing Samsung Electronics Co.’s earnings for the first time. While SK Hynix’s stock dipped after investors cashed in on its rally, the company remains a key player in advancing HBM technology to meet NVIDIA’s demands.
The South Korean chipmaker aims to double HBM sales this year and plans to ship cutting-edge 16-layer HBM4 chips by late 2026. SK Hynix is also investing heavily in production capacity across South Korea, Indiana, and a plant for AI products, positioning itself to capitalize on the growing demand for high-end memory.
The Stargate project, backed by major tech companies including Microsoft and Oracle, has fueled investor confidence, driving a rally that now faces headwinds as investors anticipate slower smartphone growth. SK Hynix’s ability to stay ahead of Samsung in designing and supplying HBM chips remains critical to maintaining its competitive edge.
Analysts predict SK Hynix will benefit from the AI-driven shift toward datacenter construction. However, challenges remain, including slowing NAND chip demand in the first quarter due to weaker non-AI applications. Despite these hurdles, SK Hynix’s strategic focus on innovation and growth continues to set it apart in a competitive industry.
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*This article was produced by Youkyung Lee.*
Source: https://finance.yahoo.com/news/nvidia-partner-sk-hynix-posts-225415254.html