From CNBC: 2024-04-24 22:40:59

1. SK Hynix, the South Korean memory chipmaker, reported a net profit of 1.92 trillion South Korean won in the first quarter, reversing past losses. Revenue surged by 144% to 12.43 trillion won, marking the highest revenue since 2022, driven by the high demand for AI chipsets and memory chips.

2. The positive financial results were attributed to an increase in sales of AI server products and leadership in AI memory technology. SK Hynix plans to increase supply of HBM3E and introduce new high-capacity server DRAM products this year to meet the growing demand for AI memory.

3. To meet the demand for AI chips, SK Hynix announced plans to build a new fab in South Korea to produce next-generation DRAM. The firm will also partner with TSMC to develop HBM4 chips and next-generation packaging technology, with mass production set to begin in 2026.

4. Despite the positive earnings report, SK Hynix shares fell over 4% on Thursday morning, reflecting macroeconomic uncertainties. The firm expects the memory market to grow steadily due to AI memory demand, with the conventional DRAM market starting its recovery in the second half of 2024.

Read more: Nvidia supplier SK Hynix reverses losses in first quarter on AI demand