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Time of India
5 days ago
- Business
- Time of India
SK hynix posts record profits on surging AI demand
Academy Empower your mind, elevate your skills South Korean chip giant SK hynix reported record quarterly profits Thursday thanks to soaring demand for artificial world's second-largest memory chip maker dominates the market for high-bandwidth memory (HBM) semiconductors and is a key supplier for US titan firm said operating profit climbed almost 70% to 9.2 trillion won ($6.7 billion) in the second quarter, with revenues coming in at 22.2 trillion won -- both all-time comes after Taiwan chip giant TSMC last week announced a surge in net profit for the second quarter, topping forecasts, thanks to robust demand for AI technology, despite the threat of US tariffs on the critical hynix also said net profit was up close to 70% on-year, at nearly seven trillion won."Aggressive investment by global big tech companies into AI led to a steady increase in demand for AI memory," it said in a of DRAM and NAND flash -- other types of computer memory -- topped forecasts, boosting the bottom line."SK hynix foresees that increasing competition among big tech companies to enhance inference of AI models would lead to higher demand for high-performance and high-capacity memory products," the company in the firm rose more than three percent in Seoul but pared gains to close up 0.2%."Nvidia suppliers like SK hynix will continue to enjoy strong demand in the coming months and years for memory chips due to the high memory content needed to make AI chips functional," G Dan Hutcheson of TechInsights told competition from rivals is its main risk factor, along with "saturation of the market as AI algorithms become more efficient as well as the uncertain impact of tariffs, the global trade war, and the resultant potential for a global recession", he Korea is a major exporter to the United States and its powerhouse semiconductor and auto industries would suffer greatly under President Donald Trump 's threatened 25% attribute SK hynix's resilience to its growth in the DRAM firm took the lead in DRAM revenues in April, with a 36% market share, according to research firm Counterpoint. That surpassed South Korean rival Samsung for the first time -- the first change in the top spot in more than four hynix said in a conference call that "the previous quarter began amid concerns over slowing demand due to trade tensions and broader economic uncertainty".But as the United States has been threatening restrictions on semiconductor sales to China, customers' preemptive purchases "to hedge against external risks" created a "more favourable environment" than expected, an SK hynix official company added that despite the geopolitical situations, its production situation saw "no change".
Time of India
14-05-2025
- Business
- Time of India
Nvidia hits the jackpot following the U.S.-China trade truce; here's why Jensen Huang is smiling all the way
Following a US-China tariff pause, tech stocks rallied, with Nvidia emerging as a key beneficiary. Wedbush analyst Dan Ives highlights that the AI chip leader is poised for new highs, fueled by broader tech relief and sustained AI investment. Nvidia's deal to supply chips to Saudi Arabia further boosts its prospects, despite concerns about potential rerouting to China. Tired of too many ads? Remove Ads Tariff Truce Sparks Tech Rally Why One Analyst Thinks Nvidia Is the Biggest Winner Tired of too many ads? Remove Ads Saudi Arabia's AI Ambitions Fuels Nvidia's Gains Concerns Over Where the Chips Might End Up FAQs After the announcement of a 90-day tariff pause between the US and China, the Nasdaq Composite, which is led by tech stocks, has nearly wiped out all of its losses so far this year, as per a report. But in the widespread rally, there's one winner according to Wedbush analyst and tech stock watcher Dan Ives, that is; stock of the chipmaker jumped over 5% Monday after the deal's news came out, however, shares are still down 3% year to date, as per Yahoo an interview with Yahoo Finances, Ives said, 'It would have to be Nvidia,' as quoted in the report. His remark came just before Nvidia's market capitalization broke above $3 trillion for the first time since February, reported Yahoo explained that the broader tariff relief rally in tech, along with an artificial intelligence investment cycle that remains intact, creates a "dream scenario" for the AI chip leader, as per the analyst said, 'I think [the stock] makes ... new all-time highs because there's only one chip in the world fueling the AI revolution, and that's led by [the] godfather of AI, Jensen, and Nvidia,' as quoted in the READ: Global sentiment sours sharply as Donald Trump returns to power, triggering dramatic decline in U.S. popularity worldwide Another reason for the chipmaker's stock to go up is because Nvidia announced it would sell 18,000 chips to an AI startup owned by Saudi Arabia's sovereign wealth fund, according to Yahoo there is a potential concern with shipping top chips to Saudi Arabia as those chips could then be smuggled to China, bypassing US export controls, as per the strategist at MacroLens, Brian McCarthy pointed out that, 'It's just very, very hard to put a net around this stuff,' adding, "The Chinese are very diligent. They have a very good network of ways to move products underground … for all kinds of products," quoted Yahoo READ: Will Donald Trump be an easy target if he uses Qatar's $400 million gift jet as Air Force One? Here's the problem with the Boeing 747 However, apart from the national security concerns, in case China indirectly buys the chip, that could be a boon for Nvidia shareholders, according to the mentioned, 'It shows it's not just about China,' adding, 'This just shows what I believe is going to be happening over the coming years — the trillions being spent on AI," quoted Yahoo struck a deal to send 18,000 chips to a Saudi-backed AI startup, as per Yahoo possible. Experts warn that enforcing chip export controls is difficult, and there's concern about chips being rerouted through third parties.
