Latest news with #SKHynixInc
Malaysian Reserve
24-04-2025
- Business
- Malaysian Reserve
Nvidia supplier SK Hynix warns of turbulence from US tariffs
SK Hynix Inc. warned of increased volatility in the second half of 2025 despite resilient demand for AI memory chips from big tech providers, reflecting the uncertainty surrounding US tariffs. The Korean company reported a better-than-projected 158% jump in March-quarter operating income, propelled in part by stockpiling ahead of Trump's tariffs. SK Hynix stuck with a forecast for a doubling in demand for the high-bandwidth memory essential to Nvidia Corp.'s AI accelerators, which in turn drive giant data centers built by the likes of Microsoft Corp. and Inc. That SK Hynix is maintaining its HBM shipment growth guidance is encouraging, said Sanjeev Rana, an analyst with CLSA Securities Korea. 'The key question on everyone's mind is, 'How will the tariffs impact tech demand in the later part of the year?'' Companies around the world are bracing for US tariffs and AI chip export curbs, as well as Chinese restrictions on rare metals, to trigger slowdowns in demand. Microsoft has pulled back on data center projects around the world, while analysts said Amazon is pausing some types of data center leases. Those fears have slowed SK Hynix stock momentum, with its shares up just 3% this year. The company's stock price fell 1.7% Thursday afternoon in Seoul, in line with the broader market. It's difficult to assess the impact of US tariffs at this point, Chief Financial Officer Kim Woo-hyun told analysts during an earnings conference call. 'With the expansion of protectionist policies such as tariff regulations and export restrictions, it has become more challenging than ever before to predict future market conditions,' he said. While American clients account for about 60% of the company's revenue, the percentage of direct exports to the US is 'not that high,' with memory shipments for American customers often going to locations outside the US, he said. For the March quarter, SK Hynix reported a better-than-expected operating income of 7.44 trillion won ($5.2 billion) on a 42% rise in revenue. Customers asking for expedited shipments of advanced chips as well as memory used in PCs and smartphones helped the company clock its second-highest quarterly performance, on the heels of record revenue and operating profit in the prior quarter. SK Hynix executives also sought to reassure investors that tariff-driven stockpiling wouldn't lead to excess customer inventory, which could weaken demand and hurt earnings in the second half of the year. Chipmakers are more likely to factor in market uncertainties and temper production plans, limiting the size of possible supply gluts or sudden drops in demand, they said. DeepSeek's low-cost models have also spurred companies and governments around the world to invest more in AI infrastructure, according to the Icheon, South Korea-based company. 'This has led us to believe that there's no doubt that HBM will continue to experience strong long-term growth in demand,' one of the executives said. Strong results enabled SK Hynix to overtake Samsung Electronics Co. as the world's top DRAM vendor for the first time in their decades-long rivalry. Acknowledging the milestone on the call, executives promised to stay ahead of the competition. SK Hynix is actively working with Nvidia on its next-generation HBM4 and is expanding factories focused on high-end DRAM to cement its lead. Its M15X plant, under construction in the southern city of Cheongju, is on track to open in the fourth quarter, the company said. Total investment on the site is projected to be more than 20 trillion won. The company said it's expecting a slight increase in capital expenditure, maintaining its previous stance. SK Hynix said sales of 12-layer HBM3E — a cornerstone of the company's AI memory strategy — are expected to increase to account for more than half of total HBM3E revenues in the second quarter. That chip is currently the most advanced HBM on the market that works alongside Nvidia's graphic processing units. –BLOOMBERG
Yahoo
24-04-2025
- Business
- Yahoo
Nvidia Supplier SK Hynix Warns of Turbulence From US Tariffs
(Bloomberg) -- SK Hynix Inc. warned of increased volatility in the second half of 2025 despite resilient demand for AI memory chips from big tech providers, reflecting the uncertainty surrounding US tariffs. Trump Gives New York 'One Last Chance' to End Congestion Fee Why Car YouTuber Matt Farah Is Fighting for Walkable Cities The Racial Wealth Gap Is Not Just About Money Backyard Micro-Flats Aim to Ease South Africa's Housing Crisis To Fuel Affordable Housing, This Innovation Fund Targets Predevelopment Costs The Korean company reported a better-than-projected 158% jump in March-quarter operating income, propelled in part by stockpiling ahead of Trump's tariffs. SK Hynix stuck with a forecast for a doubling in demand for the high-bandwidth memory essential to Nvidia Corp.'s AI accelerators, which in turn drive giant data centers built by the likes of Microsoft Corp. and Inc. That SK Hynix is maintaining its HBM shipment growth guidance is encouraging, said Sanjeev Rana, an analyst with CLSA Securities Korea. 'The key question on everyone's mind is, 'How will the tariffs impact tech demand in the later part of the year?'' Companies around the world are bracing for US tariffs and AI chip export curbs, as well as Chinese restrictions on rare metals, to trigger slowdowns in demand. Microsoft has pulled back on data center projects around the world, while analysts said Amazon is pausing some types of data center leases. Those fears have slowed SK Hynix stock momentum, with its shares up just 3% this year. The company's stock price fell 1.7% Thursday afternoon in Seoul, in line with the broader market. It's difficult to assess the impact of US tariffs at this point, Chief Financial Officer Kim Woo-hyun told analysts during an earnings conference call. 'With the expansion of protectionist policies such as tariff regulations and export restrictions, it has become more challenging than ever before to predict future market conditions,' he said. While American clients account for about 60% of the company's revenue, the percentage of direct exports to the US is 'not that high,' with memory shipments for American customers often going to locations outside the US, he said. For the March quarter, SK Hynix reported a better-than-expected operating income of 7.44 trillion won ($5.2 billion) on a 42% rise in revenue. Customers asking for expedited shipments of advanced chips as well as memory used in PCs and smartphones helped the company clock its second-highest quarterly performance, on the heels of record revenue and operating profit in the prior quarter. SK Hynix executives also sought to reassure investors that tariff-driven stockpiling wouldn't lead to excess customer inventory, which could weaken demand and hurt earnings in the second half of the year. Chipmakers are more likely to factor in market uncertainties and temper production plans, limiting the size of possible supply gluts or sudden drops in demand, they said. DeepSeek's low-cost models have also spurred companies and governments around the world to invest more in AI infrastructure, according to the Icheon, South Korea-based company. 'This has led us to believe that there's no doubt that HBM will continue to experience strong long-term growth in demand,' one of the executives said. Strong results enabled SK Hynix to overtake Samsung Electronics Co. as the world's top DRAM vendor for the first time in their decades-long rivalry. Acknowledging the milestone on the call, executives promised to stay ahead of the competition. SK Hynix is actively working with Nvidia on its next-generation HBM4 and is expanding factories focused on high-end DRAM to cement its lead. Its M15X plant, under construction in the southern city of Cheongju, is on track to open in the fourth quarter, the company said. Total investment on the site is projected to be more than 20 trillion won. The company said it's expecting a slight increase in capital expenditure, maintaining its previous stance. Related Story: SK Hynix Plans $15 Billion Chip Expansion to Meet AI Demand SK Hynix said sales of 12-layer HBM3E — a cornerstone of the company's AI memory strategy — are expected to increase to account for more than half of total HBM3E revenues in the second quarter. That chip is currently the most advanced HBM on the market that works alongside Nvidia's graphic processing units. --With assistance from Debby Wu, Vlad Savov and Carl Lou. (Updates with details, executive comments throughout.) As More Women Lift Weights, Gyms Might Never Be the Same Why US Men Think College Isn't Worth It Anymore Eight Charts Show Men Are Falling Behind, From Classrooms to Careers India's 110% Car Tariffs Become Harder to Defend in Trump Era The Guy Who Connected Donald Trump to the Manosphere ©2025 Bloomberg L.P. Sign in to access your portfolio
Mint
23-04-2025
- Business
- Mint
Nvidia Supplier SK Hynix's Earnings Beat Estimates on AI Boom
(Bloomberg) -- SK Hynix Inc. earned better-than-expected quarterly profit after US tariff-induced fears of trade disruptions pushed companies around the world to stock up on both advanced chips and memory used in PCs and smartphones. The company reported operating income of 7.44 trillion won ($5.2 billion) in the March quarter, exceeding the projected 6.6 trillion won. Revenue rose to 17.64 trillion won, the company's second-highest quarterly performance on the heels of record revenue and operating profit in the prior quarter. SK Hynix's results highlight the scale of global data center investments and the company's leading role in supplying high-bandwidth memory needed for Nvidia Corp.'s accelerators to train artificial intelligence. The Icheon, South Korea-based company on Thursday maintained its forecast of HBM demand doubling this year from 2024. Still, SK Hynix said it's bracing for increased uncertainty and volatility spurred by US tariff policies. SK Hynix's stock price is up just around 4% since the start of the year. Fears of a tariff-fueled global recession as well as a reevaluation of AI profitability in the face of DeepSeek's low-cost models are denting momentum that had helped its shares more than double over the past two years. The stock performance reflects the chipmaker's vulnerability to any slowdown in AI spending and the Trump administration's attempts to reset global trade relations. Should trade tensions tip economies around the world into recession, end-demand for all products containing chips is at risk of plummeting. 'Earnings season won't matter with larger forces at work,' Morgan Stanley analysts led by Shawn Kim said in a note to investors this week. 'The real tariff impact on memory resembles an iceberg, with most danger unseen below the surface and still approaching.' --With assistance from Debby Wu. More stories like this are available on First Published: 24 Apr 2025, 04:36 AM IST
Bloomberg
23-04-2025
- Business
- Bloomberg
Nvidia Supplier SK Hynix's Earnings Beat Estimates on AI Boom
SK Hynix Inc. earned better-than-expected quarterly profit after US tariff-induced fears of trade disruptions pushed companies around the world to stock up on both advanced chips and memory used in PCs and smartphones. The company reported operating income of 7.44 trillion won ($5.2 billion) in the March quarter, exceeding the projected 6.6 trillion won. Revenue rose to 17.64 trillion won, the company's second-highest quarterly performance on the heels of record revenue and operating profit in the prior quarter.
Bloomberg
23-04-2025
- Business
- Bloomberg
Short Selling of SK Hynix Surges to Record on Trade, AI Concerns
Bearish bets on shares of SK Hynix Inc. surged to an all-time high this month, as South Korea ended its ban on short-selling at perhaps the worst possible time for the memory chipmaker. The March 31 regulatory change made for a triple whammy on the stock, with investors souring on the AI theme while the US kicked off a global trade war. Even with SK Hynix expected to post strong earnings Thursday, short-sellers are betting on a bleak outlook.
