Nvidia distributor SK Hynix’s shares rally as automation of newest HBM chips starts

By Joyce Lee and Hyunjoo Jin

SEOUL (Reuters) – SK Hynix shares leapt greater than 9% on Thursday after the South Korean company began automation of one of the most sophisticated high-bandwidth memory (HBM) chips, drawing in advance in a race to satisfy need from an expert system (AI) boom.

Shares of the globe’s second-largest memory chipmaker outshined its larger opponent Samsung Electronics, whose shares increased 4%, likewise increased by the favorable expectation for AI need from Micron over night.

SK Hynix claimed in a declaration it was the globe’s very first latest-generation HBM item, called HBM3E, with 12 layers and 50% larger capability than the previous eight-layer chips.

SK Hynix, which has actually been the primary distributor of HBM chips to Nvidia, claimed it prepares to provide the most up to date items to unknown consumers by the end of this year.

The competitors is warming up to provide HBM chips, which help in the handling of huge quantities of information to educate AI modern technology and are important for Nvidia’s graphics refining devices.

Samsung Electronics claimed in July it prepares to provide its production-ready HBM3E 12-high devices to consumers in the 2nd fifty percent of this year.

Micron claimed previously this month that it was delivering production-capable HBM3E 12-high devices to essential sector companions for certification.

The criteria South Korean supply index increased 1.7%.

(Reporting by Joyce Lee and Hyunjoo Jin; Editing by Jacqueline Wong, Muralikumar Anantharaman and Ed Davies)