By Heekyong Yang and Joyce Lee
SEOUL (Reuters) -SK Hynix’s quarterly revenue greater than doubled on robust AI chip gross sales and stockpiling forward of potential U.S. tariffs, nevertheless it warned that macroeconomic uncertainties may create demand volatility within the second half of the yr.
The Nvidia provider reported on Thursday a 7.4 trillion received ($5.19 billion) working revenue for the primary quarter ended March, versus 2.9 trillion received a yr earlier. That topped a 6.6 trillion received common forecast by LSEG SmartEstimate, which is weighted towards the extra constantly correct analysts.
Quarterly income for the South Korean agency jumped 42% to 17.6 trillion received.
Within the first quarter, the “reminiscence market ramped up sooner than anticipated because of competitors to develop AI programs and stock accumulation demand”, SK Hynix mentioned in an announcement, whereas cautioning about volatility stemming from “elevated macro uncertainties akin to tariff coverage” later within the yr.
The corporate, nonetheless, mentioned it expects spending by large tech corporations on server chips to proceed as they search to seize early alternatives within the synthetic intelligence (AI) market.
In smartphones, the development of AI options in new fashions is predicted to drive alternative demand, boosting gross sales of high-performance cellular DRAM chips, it added.
SK Hynix has been main a world race to satisfy explosive demand for prime bandwidth reminiscence (HBM) chips, a vital part of AI chipsets made by the likes of Nvidia that assist course of huge quantities of information to coach AI fashions.
The agency has been a major HBM chip provider to Nvidia as its cross city rival Samsung Electronics has struggled to maintain up within the race.
($1 = 1,426.4500 received)
(Reporting by Heekyong Yang and Joyce Lee, further reporting by Hyunjoo Jin; Enhancing by Himani Sarkar)
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