Chip manufacturer: Nvidia supplier SK Hynix multiplies profit - AI boom drives ahead
Thanks to the AI euphoria, the South Korean memory chip manufacturer is multiplying its operating profit sevenfold. The stock rises by two percent.
Frankfurt and Seoul – SK Hynix, a South Korean memory chip manufacturer and Nvidia supplier, reported an unprecedented surge in profits driven by the ongoing artificial intelligence (AI) boom. In the most recent quarter, the company's operating earnings skyrocketed to 83.3 trillion won, a staggering sevenfold increase from the previous period, according to the report released on Wednesday.
Sales surged by 328 percent, reaching 104.6 trillion won, surpassing analysts' expectations of 76.7 to 81.67 trillion won in profits and 99 trillion won in revenue. Hynix shares followed the broader market, climbing by 2 percent. The company also announced plans to distribute approximately 100 trillion won to shareholders this year, including a previously announced 40 trillion won buyback of shares.
A portion of the funds for these distributions came from the sale of its stake in fellow competitor Kioxia, though the exact sale price remains undisclosed. Industry observers speculate that the sale price likely exceeded the 2018 investment of 4 trillion won. The Korean daily newspaper reported the company's intentions at the start of the week.
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