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Chey Tae-won, chairman of SK Group, during the SK AI Summit in Seoul, South Korea, on Monday, Nov. 4, 2024. SK Hynix is working with Nvidia to resolve the supply bottleneck, Chey said.
Jean Chung | Bloomberg | Getty Images Shares of SK Hynix rallied 6.5% on Monday after the business announced a next-generation memory chip and the parent company's chair said that the South Korean semiconductor firm sped up the supply of a key product to Nvidia . Speaking at the company's event on Monday, Chey Tae-won, chair of SK Group, ran through an anecdote in which he said Nvidia CEO Jensen Huang asked him if SK Hynix could move the supply of high-bandwidth memory (HBM) chips called HBM4 forward by six months.
SK Hynix's CEO at the time said it was possible to do so, according to Chey. It's unclear if this will shift SK Hynix's production timeline from the previously-announced second-half of 2025. High-bandwidth memory is a key component of Nvidia's chips, which are in turn used to train huge artificial intelligence models.
Tech giants around the world have been snapping up Nvidia chips in a bid to produce the most powerful models and applications. SK Hynix is a key supplier to Nvidia, and the huge demand for the American company's products has helped the South Korean firm to achieve rapid growth this year and record profits . SK Hynix shares are up around 36% this year.
On Monday, the company also announced a new product that helped support its share price rally. Samples of the chip — a 16-layer HBM — will be provided to customers in early 2025, SK Hynix said. HBM is a type of dynamic random access memory, known as DRAM, where chips are vertically stacked to save space and reduce power consumption.
Adding more layers to a HBM will, in theory, give it more capacity to handle complex AI applications. The aggressive roadmap from SK Hynix comes as its closest rival Samsung, which has fallen behind in HBM , tries to stage a comeback and get its most advanced chips certified for use by Nvidia..
