Big Tech demanding deals that smooth out memory prices, says SK Hynix
Don't worry about an AI bust, monster profits and huge margins are here to stay
South Korean memory-maker SK Hynix has revealed that it’s struck “around ten” long-term supply deals with key customers, many of them AI players, and hopes the deals smooth out volatile memory prices.
The company revealed the deals today, along with Q2 results that saw quarterly revenue reach ₩79.3 trillion ($54.5 billion), a 257 percent year-over-year increase. Operating profit grew by an even larger number: 557 percent year-over-year to ₩60.5 trillion ($41.6 billion). The memory-maker even achieved the unusual feat of delivering more net income than revenue, thanks to asset sales.
Underlying all that growth was an average 30 percent increase in the average price customers paid for DRAM, a 50 percent rise in the prices paid for NAND memory, along with increased shipments.
But the company predicted slow growth in Q3, with NAND shipments rising...
Copyright of this story solely belongs to theregister.com. To see the full text click HERE
