South Korea’s SK Hynix forecast sales of its high-end semiconductors used in generative artificial intelligence chipsets would more than double this year, after reporting a quarterly profit record that beat a results estimate for rival Samsung.

Shares in SK Hynix, a key supplier to AI chip giant Nvidia, however, fell as much as 4.7% as the company warned of steeper demand declines in commodity memory chips used in smartphones and computers as Chinese competition grows. The shares have since recovered to trade down 0.2% at midday.

SK’s factory investment plan for high-bandwidth memory (HBM) chips this year also underwhelmed investors, analysts said.

Before the result, SK Hynix shares had jumped about 30% this year on bullish sentiment driven by its business discussions with Nvidia, outperforming larger competitor Samsung, whose shares rose 2% over the same period.

Source: FINANCE.YAHOO