NVIDIA's major supplier SK Hynix announced that its operating profit for the second quarter increased by 557% year-on-year to KRW 6.05 trillion, still below the analysts' average expectation of KRW 6.42 trillion. Revenue reached KRW 7.93 trillion, falling short of the expected KRW 8.39 trillion, intensifying market concerns over a potential slowdown in the AI boom and semiconductor demand. The company stated it has signed multi-year contracts with approximately 10 customers. Driven by one-time investment gains, net profit surged by 1,242%, exceeding expectations. Although SK Hynix has surpassed Samsung Electronics by leveraging high-bandwidth memory for NVIDIA chips, becoming the leader in the AI memory market, its market capitalization has shrunk by more than USD 50 billion since June, and its stock price has dropped by about 45% within a month, amid concerns over high valuation, rising tech sector debt, and slowing growth in average chip prices. Investors worry that soaring chip costs will drive up consumer electronics prices, forcing PC and smartphone manufacturers to cut production. However, chipmakers believe cloud service providers continue to increase memory orders, indicating long-term demand will still outpace supply.
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Original article: toutiao.com/article/1872026385746953/
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