By Heekyong Yang and Joyce Lee
Seoul (Reuters) -Sk Hynix The quarterly benefit of Hynix has more than doubled on the high sales of AI fleas and storage before potential American prices, but he warned that macroeconomic uncertainties could create the volatility of demand during the second half.
The NVIDIA supplier announced on Thursday an operating profit of 7.4 Billions of Won ($ 5.19 billion) for the first quarter finished in March, against 2.9 Billions of Won a year earlier. This exceeded the average forecasts of 6.6 Billions of Won by Lseg Smartestimate, which is weighted towards more regular analysts.
The quarterly income of the South Korean company jumped 42% to 17.6 Billions of Won.
In the first quarter, the “memory market increased faster than expected due to competition to develop AI systems and the demand for inventory accumulation,” said SK Hynix in a press release, while warning against volatility resulting from “high macro uncertainties such as tariff policy” later in the year.
The company, however, said that it expects the expenses of large technological companies on the chips of servers will continue when they sought to seize the first opportunities on the artificial intelligence market (AI).
In smartphones, the advancement of AI functionality in new models should stimulate replacement demand, increasing sales of high performance mobile flea chips, he added.
SK Hynix has led a world race to meet the explosive demand for high bandwidth (HBM), a crucial component of AI chipsets manufactured by Nvidia which helps processing large amounts of data to form AI models.
The company was a main provider of HBM fleas in Nvidia, because its cross Town Samsung Electronics rival had trouble following the race.
(1 $ = 1,426,4500 won)
(Report by Heekyong Yang and Joyce Lee, additional report by Hyunjoo Jin; edition by Himani Sarkar)