SK hynix shares hit all-time high as major client Nvidia flourishes

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SK hynix shares hit all-time high as major client Nvidia flourishes

Published: 22 Feb. 2024, 11:36 Updated: 22 Feb. 2024, 15:50

JIN EUN-SOO
jin.eunsoo@joongang.co.kr

SK hynix [YONHAP]

SK hynix shares closed at an all-time high of 156,500 won ($118) on Thursday, a 5.03 percent jump, as its major client Nvidia announced better-than-expected guidance for the fourth quarter.

Shares of SK hynix, which supplies premium high bandwidth memory (HBM) chips to Nvidia, soared as the market opened Thursday, affected by Nvidia's earnings announcement the previous night. It hit its record-high of 156,000 won during morning trading before climbing up further to break another record before the market closed.

AI chip designer Nvidia posted $22.1 billion in fourth-quarter revenue, largely exceeding market expectations of $20.4 billion, riding high on the global AI boom. Its first-quarter forecast of $24 billion also hovered over the market estimate of $22 billion.

"Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations," Jensen Huang, founder and CEO of Nvidia said.

SK hynix supplies its HBM3 chip for Nvidia's H100 GPU and is also slated to supply HBM3E for the upcoming B100 GPU after finishing the verification process.

Samsung Electronics, which also collaborates with Nvidia on HBM supply, closed at 73,100 won, 0.14 percent up from the previous trading day.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]