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SK Hynix Stock Soars on AI Chip Demand
8 Apr
Summary
- SK Hynix shares surged 15% following Samsung's positive earnings forecast.
- Samsung Electronics expects an eight-fold jump in Q1 operating profit.
- Full-year operating profit estimate for SK Hynix increased by 28%.
Shares of South Korean chipmaker SK Hynix experienced a substantial 15% increase on Wednesday, trading at 1,050,000 won per share. This surge followed a positive forecast from competitor Samsung Electronics.
Samsung Electronics projected its first-quarter operating profit would surge by more than eight-fold, significantly exceeding analyst expectations. This optimism is attributed to the booming demand for artificial intelligence infrastructure, which is driving up chip prices and straining supply chains.
In light of these developments, Korea Investment & Securities raised its full-year operating profit estimate for SK Hynix by 28% to 216 trillion won. This upgrade reflects stronger-than-anticipated price increases for both DRAM and NAND chips, suggesting a strong financial year ahead for the company.
SK Hynix, recognized as the world's second-largest memory chip maker, is scheduled to announce its January-March earnings later this month, with expectations now running high.
