SK Hynix, a key supplier to NVIDIA Corporation (NASDAQ:NVDA), has reported its first profitable quarter in five, attributing the turnaround to soaring demand for AI chips.
What Happened: The South Korean memory chip manufacturer recorded a net profit of 1.92 trillion South Korean won ($1.39 billion) in the first quarter, a stark contrast to the 2.58 trillion won loss in the same period last year, CNBC reported. This marks SK Hynix’s first positive income since the third quarter of 2022.
The company attributes its strong performance to the increased sales of AI server products, driven by its leadership in AI memory technology, particularly high-bandwidth memory. This technology is crucial for AI chipsets, such as those used by Nvidia.
The demand for AI chipsets has significantly boosted the high-end memory chip market, benefiting major players like SK Hynix and Samsung Electronics.
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SK Hynix plans to meet the increasing demand for AI memory by boosting the supply of HBM3E, the latest generation of high-bandwidth memory for AI. The company also intends to introduce 32GB Double Data ...