SK Hynix Expects AI Boom to Drive Chip Business Growth, Significant Narrowing of Third Quarter Losses
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After announcing a significant narrowing of its third-quarter loss, South Korea's SK Hynix expressed that the boom in artificial intelligence will drive profit growth in its chip business. The company noted that the strong demand for AI chips helps alleviate the prolonged decline in demand for general-purpose chips in smartphones and computers. SK Hynix anticipates a genuine recovery in the memory chip market next year. Its DRAM business returned to profitability in the third quarter. Analysts indicated that due to depleted demand, SK Hynix may have recorded a loss of approximately 2 trillion won in its NAND flash memory chip business during the third quarter.
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