Samsung and SK Hynix post record quarter amid AI demand
Samsung and SK Hynix just had their best quarter ever, raking in a combined $104 billion thanks to the huge demand for memory chips powering AI technology.
Together, they control 80% of the global market, so when AI takes off, so do their profits.
SK Hynix may top 27-year earnings
SK Hynix is on track to beat its total earnings from the past 27 years by year-end.
Both companies have signed big supply deals with major data center clients, locking in future business.
Oddly enough, their stock prices have dropped lately; investors are worried about spending on AI and possible chip oversupply.
Still, company executives say memory shortages could stick around until at least 2028.
Experts see contracts stabilizing chip market
Experts think these long-term contracts will help smooth out the ups and downs of the chip market.
As more advanced memory chips become essential for AI, they're starting to look like core tech infrastructure, kind of like cloud services or high-end semiconductors.