South Korea’s SK Hynix has announced that it is ready to mass produce its sixth-generation high-bandwidth memory (HBM4) chips, marking a decisive step in the competition to supply critical components for artificial intelligence computing.
The company said on Friday that it had completed internal validation and quality checks for the new chips, which offer double the bandwidth and 40% higher power efficiency than the previous generation.
The development comes at a time when AI demand is reshaping the semiconductor sector and has pushed SK Hynix’s market value up by more than $80 billion since the start of the year.
SK Hynix advances with HBM4 readiness in 2025
HBM is a type of dynamic random access memory (DRAM) designed for high-performance applications such as AI, data centres, and advanced chipsets.
SK Hynix’s HBM4 will play a central role in powering Nvidia’s upcoming Rubin architecture, the next generation of AI processors for global data centres.
Nvidia, already a dominant force in AI hardware, has relied heavily on SK Hynix as its main supplier of memory for GPUs.
Earlier in the year, SK Hynix shipped HBM4 samples to customers, aiming to maintain its leadership over rivals Samsung Electronics and Micron Technologies.
Both competitors are racing to get their products validated for Nvidia systems, with Micron also delivering samples and Samsung working on certification.
Despite this, analysts expect SK Hynix to retain a market-leading position, with Counterpoint Research forecasting it could secure around 50% of the HBM segment by 2026.
Stock market surge reflects growing AI memory demand
The announcement immediately lifted SK Hynix shares by more than 7% on Friday, driving the stock to its highest level since 2000. This added to a nearly 90% rise year-to-date, fuelled by investor confidence in its AI-driven memory business.
Samsung shares have gained over 40% in 2025, while Micron is up almost 80% in the same period, showing how the entire memory chip sector is benefiting from the global AI boom.
SK Hynix’s June-quarter results highlighted the scale of this shift, with record revenue and operating profit largely driven by HBM sales.
High-bandwidth memory accounted for 77% of the firm’s total revenue in the quarter, underscoring its importance to the company’s business model.
The firm now expects HBM sales to double in 2025 compared with 2024, with AI demand projected to drive further growth through to 2026.
Competition intensifies as rivals pursue certification
Although SK Hynix has gained a significant head start in the HBM4 race, competition remains intense. Micron’s early shipments indicate progress, and Samsung continues to leverage its scale and resources to close the gap.
Reports suggest Samsung is actively pursuing certification of its HBM4 chips with Nvidia, which could shift the competitive balance in the coming years.
Still, SK Hynix’s readiness to begin full-scale manufacturing places it in a strong position to serve Nvidia’s Rubin platform, reinforcing its role as a key partner in the global AI supply chain.
Industry observers note that the completion of HBM4 development represents not just a milestone for SK Hynix but also for the wider semiconductor sector, which is being rapidly reshaped by demand for AI computing capacity.
Market impact and long-term growth prospects
The surge in HBM demand is reshaping semiconductor earnings, valuations, and market strategies.
SK Hynix’s market capitalisation has risen by more than $80 billion in 2025 alone, with the company benefiting from its leadership in one of the most critical segments of AI hardware.
With global data centres requiring ever faster and more efficient memory, HBM4 is expected to become central to sustaining the performance of AI models.
As rivals work to close the gap, the memory chip market will likely see heightened competition, new product cycles, and increased pressure to balance power efficiency with bandwidth.
For now, SK Hynix’s early move into mass production ensures it remains at the centre of this transformation.
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