Nvidia Set to Benefit as SK Hynix Targets Double-Digit DRAM Sales from AI Chips in 2024
Portfolio Pulse from Anusuya Lahiri
SK Hynix expects its high-bandwidth memory (HBM) chips, used in AI chipsets, to make up a significant portion of its DRAM sales by 2024, benefiting Nvidia as a key recipient. SK Hynix, a leading supplier of HBM3 chips to Nvidia, anticipates these chips will represent 15% of global DRAM sales in 2024, up from 8% in 2023. The company also plans a $4 billion chip-packaging facility in Indiana, supported by the U.S. Chips Act. This development comes amid heightened U.S.-China semiconductor tensions, with China reducing its reliance on U.S. microprocessors from Intel and AMD.
March 27, 2024 | 11:30 am
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NEGATIVE IMPACT
AMD is impacted by China's decision to phase out U.S. microprocessors, including AMD's, from government computers and servers.
Similar to Intel, AMD is adversely affected by the geopolitical semiconductor tensions between the U.S. and China. China's decision to phase out U.S. microprocessors from government use directly threatens AMD's business in China, potentially leading to decreased sales and a weaker market position in one of the world's largest markets for semiconductors.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Intel faces challenges in China as the country phases out U.S. microprocessors, including those from Intel, in government computers and servers.
The geopolitical tensions between the U.S. and China, particularly the semiconductor embargo and China's retaliatory measures against U.S. microprocessors, directly impact Intel's market position in China. As China seeks to reduce its reliance on U.S. technology, including Intel's microprocessors, this could negatively affect Intel's sales and market share in a key international market.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
Nvidia, as a primary recipient of SK Hynix's HBM chips, is positioned to benefit from the increased adoption and sales of these AI-focused memory chips.
Nvidia's role as a key recipient of SK Hynix's HBM chips, which are crucial for AI chipsets, directly ties its fortunes to the expected increase in HBM chip adoption and sales. Given Nvidia's dominance in the AI chip market, any positive development in HBM chip technology and sales is likely to enhance its competitive position and potentially its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90