South Korea's SK Hynix on Thursday posted a record quarterly profit as the Nvidia supplier saw strong sales of advanced chips such as high-bandwidth memory (HBM) used in generative artificial intelligence chipsets.

Shares of Micron (NASDAQ:MU) are down about 3.5% on the day. About This Article  Shares of Micron are down about $4.50 on the day thanks to Nvidia supplier, SK Hynix. Granted, SK Hynix did post a record quarterly profit.

SK Hynix Inc., a major supplier of memory chips, has announced record quarterly earnings. However, investors have reacted cautiously. Concerns about smartphone demand and future AI spending have tempered enthusiasm.

The company’s Q4 revenue increased by 12%, and its operating profit rose by 15%, making for its best quarter ever, SK Hynix said in a statement. The company also announced that its revenue for the year was 66.1930 trillion won (roughly $46.13 billion). SK Hynix raised its annual fixed dividend for shareholders by 25%.

Industry sources indicate that thermal issues associated with GB200 have prompted major clients including Microsoft, Amazon, Google, and Meta to reduce their orders, impacting not only Nvidia's product sales and revenue but also creating significant implications for its primary HBM supplier,

SK Hynix 0006600.68%increase ... chip maker supplies advanced high-bandwidth-memory products to AI-chip giant Nvidia, and its market leadership has helped significantly boost profits over the ...

SK Hynix is the second-largest semiconductor manufacturer in South Korea following Samsung Electronics. The company’s major business is memory and storage used in various electronic devices; smartphones,

Micron Technology's growth is driven by AI development and US government support. Click here to read more about MU stock and why it is a Buy.

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SK Hynix soars to record profits driven by strong demand for its high-bandwidth memory (HBM) products used in AI applications.