The shares of SK Hynix have been rising drastically recently, giving rise to optimism for a comeback after an economic downturn in the memory sector.
DRAM Industry Set to Experience Economic Revival, AI Boom Comes to the Rescue
BusinessKorea reports that the shares of SK Hynix have grown up to 50% since the beginning of the year, mainly due to the rising demand for DDR5 and HBM (High Bandwidth Memory). The AI hype has benefitted GPU manufacturers like NVIDIA, and the boom has now transitioned to the DRAM industry, resulting in huge demand. As per the data released by the financial company FnGuide, SK Hynix share pricing has risen to 121,100 won, marking the highest increase in a 52-week time frame.
Moreover, SK Hynix has attracted several foreign investors' interest, resulting in a "purchasing frenzy." It is reported that investors purchased a total of 191.5 billion won in SK Hynix shares in June only. TrendForce has predicted that for the fiscal year of 2023, the supply and demand chain will get more balanced, and the demand is anticipated to reach up to 1.05419 trillion units on a 2-gigabit chip conversion basis.
The memory manufacturer is well aware of the benefits of the current AI boom, so it has reportedly received a request from NVIDIA to sample its next-gen HBM3E DRAM. To recap, the current-gen Hopper GPUs are powered by HBM3 memory and are the fastest for the AI segment. If SK Hynix secures a deal with NVIDIA, it is expected that both companies will ultimately benefit from the AI hype.
It seems like the AI boom is here to rescue the dwindling computing industries and judging by the figures, it is succeeding. NVIDIA has successfully entered the trillion-dollar club through this surge in demand, and it won't be long to see companies like SK Hynix getting their share of the hype.
Refference- https://wccftech.com
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