Nvidia supplier SK Hynix sees no AI chip oversupply as profit soars to record
SK Hynix on Thursday posted a record quarterly profit as the Nvidia supplier booked strong sales of its advanced chips, and said demand for high-bandwidth memory (HBM) chips would continue to outpace supply next year.
The company played down market concerns about an oversupply of the chips used in generative AI chipsets, saying production of higher-margin HBM chips was limited due to technological challenges, while demand was proving stronger than expected.
«We believe that it is premature to talk about demand slowdown for AI chips and HBM at this point,» Kim Kyu Hyun, SK Hynix's head of DRAM marketing said on a conference call, citing ever-increasing requirements for computing power.
The world's second-biggest memory chipmaker swung to an operating profit of 7 trillion won ($5.07 billion) for the July-September quarter from a loss a year earlier. That compared with a 6.8 trillion won average forecast by LSEG SmartEstimate, which is weighted toward analysts who are more consistently accurate.
SK Hynix has outperformed rivals Samsung Electronics and Micron Technology in recent quarters, as it has benefited the most from AI-driven appetite for high-end memory chips following its early entry and large investments in HBM chip development.
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