Nvidia CEO Jensen Huang Urges SK Hynix to Accelerate Production of Next-Generation Chip, Resulting in a 6.5% Rally

• Jensen Huang, CEO of Nvidia, asked Chey Tae-won, chair of SK Group, if SK Hynix could accelerate the production of HBM4 chips by six months.
• SK Hynix also announced a new 16-layer HBM product.
• The latest product from SK Hynix has caused a 6.5% increase in the company's stock price, following news of a timeline shift.

On Monday, SK Hynix's shares rose 6.5% after the company unveiled a new next-generation memory chip and its parent company's chair stated that the South Korean semiconductor firm had accelerated the delivery of a crucial product.

At the company's event on Monday, Chey Tae-won, chair of SK Group, recounted a story about Nvidia CEO Jensen Huang inquiring if SK Hynix could accelerate the supply of HBM4 chips by six months. According to Chey, SK Hynix's CEO at the time confirmed it was feasible to do so.

It is uncertain if SK Hynix's production timeline will be altered from the previously-announced second-half of 2025.

Nvidia's chips, equipped with high-bandwidth memory, are used globally by tech giants to train massive artificial intelligence models. These companies are competing to create the most powerful models and applications by purchasing Nvidia chips.

Nvidia's demand has propelled SK Hynix's growth and profitability this year.

SK Hynix shares are up around 36% this year.

On Monday, the company announced a new product that helped boost its share price. Customers will receive samples of the chip, a 16-layer HBM, in early 2025, SK Hynix stated.

HBM, a type of DRAM, utilizes vertically stacked chips to conserve space and power, and increasing its layers could theoretically enhance its capacity to manage intricate AI applications.

SK Hynix is aggressively pursuing a roadmap, while Samsung, its closest rival, is attempting to recover from falling behind in HBM and obtain Nvidia certification for its most advanced chips.