SK Hynix stocks rise 5% after signing major supply deal with Nvidia

SK Hynix stocks rise 5% after signing major supply deal with Nvidia

SK Hynix stocks rise 5% after signing a major supply deal with Nvidia

SK Hynix stocks have surged by 5% after reports that the company has signed a major supply deal with Nvidia, bringing their share price to 94,000 WON, their highest value since 2001. 

Right now SK Hynix is working on bringing their GDDR6 memory into mass production, chips which will reportedly be key to Nvidia’s next-generation ambitions, offering greater efficiency and increased performance when compared to today’s GDDR5 memory offerings.  

This new supply deal secures a large number of orders from SK Hynix for an extended period. It is also worth noting that Nvidia’s future graphics card offerings are expected to use HBM2 and GDDR6 memory, both of which can be produced by SK Hynix. These two memory types offer high levels of memory bandwidth and as such command a high price tag, explaining why SK Hynix’ stocks rose when this deal was announced.  

  

SK Hynix stocks rise 5% after signing major supply deal with Nvidia  

Rumour has it that Nvidia is planning to announce their next generation of graphics cards in mid-late summer 2018, making Nvidia’s supply of high-end memory solutions vital if the company wants to keep up with demand.

Nvidia has not released a new consumer graphics architecture for almost two years, leaving a lot of pent-up demand for new graphics hardware from ultra-high-end gamers and benchmarking junkies. 

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