Nvidia Supplier SK Hynix's 'Best-In-Class,' Advanced Next-Gen AI Chip Launch Sends Stock Soaring To 25-Year High

Shares of Hynix Semiconductor, listed on the South Korean Exchange, rallied 7% on Friday, closing at their highest levels in 25 years. An announcement from the company regarding the development of its next-generation memory chip stoked the rally.

In a press statement released on Friday, SK Hynix said it has completed the development and finished preparation of HBM4. HBM stands for high bandwidth memory chips designed for high-speed data transfer and reduced power consumption, and are particularly used in high-performance computing and AI applications.

Seoul-based Hynix said it can now supply the“best-in-class” HMB4 chip to its customers, as per plan, which in turn helps it maintain its competitive positioning.“The product's bandwidth has doubled and power efficiency has improved 40% compared to the previous generation,” it added.

The company claimed that HBM4 has the industry's best data processing speed and power efficiency, with the bandwidth doubled through the adoption of 2,048 I/O terminals, double from the previous generation. Power efficiency improved by more than 40%. It also stated that it hopes to improve AI service performance by up to 69% when the product is applied, which will help solve the data bottleneck and significantly reduce data center power costs.

Rising demand for memory chips used in high-performance computing by hyperscalers and others helped Hynix record 70% year-over-year net profit growth and 35% revenue growth for the second quarter.

The company is a major supplier to U.S. big tech firms, including Nvidia (NVDA) and Apple (APPL). Riding on the AI revolution that has taken a firm grip, Nvidia stock has gained 32% year-to-date.

Retail traders on Stocktwits, however, continued to hold a pessimistic view of the stock, with the Stocktwits sentiment meter for it reading 40/100 early Friday, suggesting a 'bearish' disposition. The message volume was also 'low.'

Justin Kim, President & Head of AI Infra at SK hynix, said.“HBM4, a symbolic turning point beyond the AI infrastructure limitations, will be a core product for overcoming technological challenges.”

“We will grow into a full-stack AI memory provider by supplying memory products with the best quality and diverse performance required for the AI era in a timely manner.”

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