A man walks past a logo of SK Hynix at the lobby of the company’s Bundang office in Seongnam on January 29, 2021.
Jung Yeon-Je | AFP | Getty Images
South Korean memory chipmaker SK Hynix said Friday it’s primed to begin mass production of its next-generation High Bandwidth Memory (HBM) chips, a move that sent the company’s stock soaring as it solidifies its lead in the crucial AI memory market.
HBM, a specialized type of memory, is a critical component in chipsets powering artificial intelligence computing, including those manufactured by AI heavyweight Nvidia, a key SK Hynix client. The demand for HBM is surging as AI models become more complex and require faster, more efficient data processing.
Earlier this year, SK Hynix disclosed that it had already shipped samples of its HBM4 chips to select customers, signaling its ambition to outpace competitors like Samsung Electronics and Micron Technologies in this rapidly evolving sector.
According to Friday’s announcement, SK Hynix has concluded its rigorous internal validation and quality assurance processes for HBM4, paving the way for large-scale manufacturing. This achievement underscores the company’s commitment to delivering cutting-edge memory solutions to meet the escalating demands of the AI industry.
“Completion of HBM4 development will be a new milestone for the industry,” stated Joohwan Cho, head of HBM development at SK Hynix, highlighting the significance of this breakthrough.
HBM4 represents the sixth generation of HBM technology, a type of Dynamic Random Access Memory (DRAM). DRAM is ubiquitous in personal computers, workstations, and servers, serving as the primary storage for active data and program code. The stacked architecture of HBM allows for significantly higher bandwidth and lower power consumption compared to traditional DRAM.
SK Hynix claims its latest HBM4 product delivers double the bandwidth and a 40% increase in power efficiency compared to its predecessor. This leap in performance is crucial for handling the immense data processing requirements of advanced AI applications.
Notably, industry experts anticipate that HBM4 will be the primary AI memory chip required for Nvidia’s next-generation Rubin architecture. This architecture represents a significant advancement in AI chip technology, designed for deployment in global data centers.
“SK Hynix is a key supplier for Nvidia, and the announcement shows it remains far ahead of rivals,” noted Dan Nystedt, vice-president at TriOrient, an Asia-based private investment firm specializing in semiconductors.
While Samsung Electronics and Micron have been striving to close the gap with SK Hynix in the HBM market, the South Korean firm continues to capitalize on its early lead and its close partnership with Nvidia. The competitive landscape is intensifying, with substantial capital investments and technological innovations from all major players.
Despite challenges, Micron has also announced the shipment of HBM4 samples to key clients, and Samsung is reportedly in the process of seeking Nvidia’s certification for its own HBM4 chips. These developments indicate the industry-wide race to capture a share of the lucrative HBM market.
“Despite the shifting competitive landscape, we anticipate SK Hynix will maintain a commanding position, potentially securing around 50% of the HBM market share by 2026,” projected MS Hwang, research director at Counterpoint Research, specializing in memory solutions.
Following the HBM4 announcement, SK Hynix shares surged more than 7% on Friday, hitting their highest level since 2000 and bringing their year-to-date gains to nearly 90%. This impressive stock performance reflects investor confidence in the company’s strategic direction and its ability to capitalize on the burgeoning AI market. Shares of Samsung Electronics and Micron have also benefited from the AI-driven memory boom, rising over 40% and nearly 80% in 2025, respectively.
The company’s strong performance is further evidenced by its record operating profit and revenue for the June quarter, driven by robust HBM demand, which accounted for 77% of its total revenues.
Looking ahead, SK Hynix expects to double HBM sales for the full year compared to 2024 and anticipates continued strong demand from the AI sector well into 2026. The memory market is entering a supercycle, with HBM playing a pivotal role.
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