"SK hynix is surfing the AI hype wave by setting up what it nebulously describes as a solutions biz to further exploit the hysteria. The chipmaker is already flying high on the back of booming demand for datacenters. Its share price has quadrupled in the past year as it supplies a vital component, one now in tight supply. Judging by its financials published today, the AI gravy train isn't slowing."
"Shipments of application-specific integrated circuits (ASICs) aimed at AI servers are forecast to triple by 2027, according to Counterpoint Research. Unit sales are estimated to exceed 15 million by 2028, surpassing shipments of the datacenter GPUs that currently dominate AI processing. ASICs are generally used more for inference, and are cheaper than high-end GPUs in terms of operating costs, but may incur higher upfront costs. Broadcom is expected to take 60 percent market share in 2027."
SK hynix will launch a subsidiary called AI Company in February to provide AI datacenter solutions. The unit will prioritize software for AI system optimization and will expand investments across datacenter technologies and companies. SK hynix committed $10 billion and will appoint an interim management team and board next month. Market demand is shifting toward integrated AI solutions combining hardware, software and services. Shipments of AI-targeted ASICs are forecast to triple by 2027, with unit sales exceeding 15 million by 2028. ASICs favor inference and lower operating costs but may require higher upfront investments. Broadcom is expected to take 60 percent market share in 2027. SK hynix's share price has quadrupled over the past year due to booming datacenter demand.
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