SK Hynix has officially commenced mass production of a new version of its high-bandwidth memory (HBM) chips, leading to a notable surge in its stock price.
On Thursday morning, shares of the South Korean semiconductor company jumped more than 9%, reaching 180,900 won (approximately $135.45) following the announcement.
The newly developed HBM3E chip is distinguished as the world’s first 12-layer variant of this generation of memory technology, designed specifically to support high-end generative artificial intelligence applications. This latest version offers a capacity of 36 gigabytes, marking a 50% increase over the previous eight-layer model that began production in March, while maintaining the same physical thickness.
As the world’s second-largest memory chip manufacturer, SK Hynix aims to strengthen its position in the burgeoning AI memory chip market, where it has been a significant supplier for industry leaders such as Nvidia. The company plans to deliver the new HBM3E chips to customers by the end of the year.
The announcement came on the heels of a strong earnings forecast from Micron Technology, a major US competitor, which reported optimistic projections for its first fiscal quarter due to robust demand for HBM chips. Micron anticipates a profit of $1.74 per share on revenues of $8.7 billion, surpassing market expectations.
The positive sentiment surrounding AI memory demand has not only bolstered SK Hynix’s shares but also led to a rally in other Asian chip stocks. Tokyo Electron saw a 7% increase, while Advantest rose 5%. Additionally, Samsung Electronics, the largest memory chip manufacturer globally, gained over 3% amid the bullish outlook.
The South Korean benchmark Kospi index also experienced a rise, up 2% on the day.
With its market capitalization having nearly doubled to around $100 billion in the past year and shares up 28% year-to-date, SK Hynix continues to capitalize on the increasing demand for semiconductors driven by advancements in AI technologies. The company previously announced that its HBM products for 2024 were sold out and nearly fully booked for 2025.
With input from CNBC, Market Watch, and Reuters.
