Quick overview

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South Korean chipmaker SK Hynix surged after competitor Samsung Electronics’ quarterly earnings were predicted to beat the market.

Expectations for SK Hynix’s performance increased. Samsung Electronics predicted a significant increase in its first-quarter operating profit on Tuesday, exceeding analyst expectations. This resulted from the increasing demand for artificial intelligence infrastructure, which strained supply and raised chip prices.

Korea Investment and Securities considerably increased its projection of SK Hynix’s operating profit for the year.

The primary reason for this increase was the notable price increases for both DRAM and NAND chips. This increase led to a 28% increase in operating profit, which was greater than estimated

SK Hynix’s share price rose by 15%, surpassing both the market’s 7% increase and Samsung’s 8.7%. SK Hynix is the second-biggest producer of memory, after Samsung Electronics. SK Hynix shares increased by 15% to 1,050,000 won ($712.20) each, outpacing both the market’s 7% increase and Samsung’s 9% gain.

The second-biggest memory chip producer after Samsung Electronics, SK Hynix, will release its January–March earnings later this month.