SK Hynix Rises as AI Demand Shifts Memory Allocation Away from Phones
SK Hynix surged by 7% in early trading due to increased demand for high-bandwidth memory (HBM) driven by artificial intelligence applications, which is diverting wafer capacity away from traditional DRAM used in smartphones. Apple's stock fell slightly as CEO Tim Cook warned of rising memory costs impacting the September quarter’s margins. Micron Technology reported a modest 0.4% gain and guided to strong fiscal Q4 revenue growth amid ongoing supply tightness expected beyond 2027, with gross margin projections at an unusually high level for its cyclical market. The Roundhill Memory ETF rose by 3%, outperforming the broader S&P 500 which declined. The shift in wafer allocation is reshaping semiconductor dynamics, favoring Korean suppliers like SK Hynix and Samsung while pressuring Apple’s purchasing power due to limited supplier options for DRAM. The move began overnight on the Korean market before spilling into U.S. trading.
Topics: AI_infrastructure memory_chips semiconductors stock_performance