Nvidia Seeks Early Delivery of SK Hynix's HBM4 Chips Amid Growing Demand for AI Capacity

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Nvidia (NVDA, Financials) has requested SK Hynix expedite delivery of its HBM4 high-bandwidth memory chips by six months, SK Group Chairman Chey Tae-won said on Monday.

The CEO of Nvidia Jensen Huang mentioned the necessity of the new chip generation to meet rising AI processing demand, according to a Reuters report.

SK Hynix earlier revealed intentions to begin shipping HBM4 chips towards the later part of 2025. Though no other information was given, the company's spokesman stated Monday that this new schedule shows a speedier timetable than first projected, Reuters said.

The faster purchase from Nvidia highlights the rising need for powerful, high-capacity CPUs required for artificial intelligence operations. Currently commanding over 80% of the worldwide market for artificial intelligence chips, mostly utilized in generative AI, Nvidia is the number one company in its field.

Aiming to satisfy growing demand, SK Hynix leads in creating high-bandwidth memory chipsessential for processing vast amounts of data sets in artificial intelligence systems. In the race to satisfy the industry's rising capacity needs, the company is up against Micron (MU, Financials) and Samsung Electronics.

Early next year, SK Hynix will ship samples of its 16-layer HBM3E chips to customers; CEO Kwak Noh-Jung said at the SK AI Summit in Seoul. Samsung also indicated developments on a supply agreement for its HBM3E chips and intends to manufacture HBM4 chips by the second half of next year.

This article first appeared on GuruFocus.