SEOUL :South Korea's SK Hynix said on Wednesday the memory chip market was beginning to recover from a deep downturn amid robust artificial intelligence demand, sending its shares higher even though it reported a second-quarter operating loss.
Market conditions remain mixed depending on the type of chips. SK Hynix said on Wednesday it would cut more production of its NAND Flash chips used for data storage because of high inventories and low profitability amid a fall in the average sales price. SK Hynix reported a 2.9 trillion won operating loss in the April to June quarter, down from 4.2 trillion won profit a year earlier on weak memory chip pricing and demand.
SK Hynix has reported losses each quarter since the fourth quarter of 2022, although the June quarter loss narrowed from a record of 3.4 trillion won loss in the March quarter.SK Hynix said demand for AI server memory had increased rapidly. Its DRAM chips, which hold information from applications while the system is in use, sold for a higher price in the second quarter versus the first, on average.
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