SK Hynix’s shares have increased by 5 % following reports that the company has signed a major GDDR6 memory supply agreement with Nvidia, bringing its share price to 94 000 won, its highest value since 2001.
SK Hynix will be Nvidia’s partner to supply the GDDR6 memories
SK Hynix is currently working to bring its GDDR6 memory into serial production, chips that are reported to be the key to Nvidia’s ambitions for the next generation of graphics cards, delivering greater efficiency and performance compared to current GDDR5 memory offerings.
This new supply agreement guarantees a large number of orders from SK Hynix for an extended period of time. It should also be noted that Nvidia’s future graphics card offerings are expected to use HBM2 and GDDR6 memory, both manufactured by SK Hynix. These two types of memory offer high levels of memory bandwidth and as such have a high price, which explains why SK Hynix’s shares increased when this deal was announced.
Nvidia is rumoured to be planning to announce its next generation of graphics cards in mid- to late-summer, making a steady supply of GDDR6 memory vital if the company is to keep up with the coming demand.
With two years without launching a new graphics card, many players and professionals will be launching the GTX 11 series as soon as they arrive at the stores.