SK Hynix Sells Out

SK Hynix, a South Korean memory chip manufacturer and key Nvidia supplier, has already sold its entire 2026 chip production due to booming demand for AI infrastructure. This surge in demand has led to record profits for the company, with a 62% jump in quarterly profit. The company's operating profit reached 11.4 trillion won ($8.00 billion), and sales climbed to 24.45 trillion won.

As a leading supplier of high-bandwidth memory (HBM) chips, particularly to Nvidia, SK Hynix is strategically positioned to capitalise on the AI boom. The company plans to expand production capacity and begin supplying next-generation HBM4 components. This insatiable demand for HBM is expected to persist, driven by massive AI projects and the increasing need for AI infrastructure.

The AI-driven demand is reshaping the memory chip market, leading to tight supply conditions expected to continue through 2027. Both SK Hynix and Samsung have reportedly increased traditional memory chip prices by up to 30% in the fourth quarter. SK Hynix's success reflects the broader trend of big tech firms investing heavily in AI services, further fuelling the demand for advanced memory chips.