SK Hynix Inc.’s shares slid 4.7% after its record quarterly profit and modest capex plans failed to impress investors betting on insatiable AI demand for advanced memory chips.

Nvidia Corp.’s main supplier of high-bandwidth memory reported a more than 20-fold jump in operating profit to 8.08 trillion won ($5.6 billion) in the December quarter on a 75% rise in revenue, in line with analysts’ estimates. The South Korean company also boosted its annual dividend by 25% to 1,500 won a share, and said it expects HBM sales to more than double this year.

The numbers underscore how SK Hynix remains at the forefront in the HBM that Nvidia accelerators need to train AI — at the expense of longtime rival Samsung Electronics Co. They may also help assuage concerns that a global AI-fueled datacenter spending spree by Big Tech companies such as Microsoft Corp. and Meta Platforms Inc. has peaked.

That boom got a new boost this week, however. SoftBank Group Corp., OpenAI, Oracle Corp. and Abu Dhabi-backed MGX said they plan to set up a $100 billion venture to bankroll and build datacenters, targeting $500 billion worth of investments over four years. News of the Stargate project, promoted by President Donald Trump, fueled a rally in AI players from Nvidia to Arm Holdings Plc.

Source: FINANCE.YAHOO