Shares of SK hynix, a major memory chip supplier to Nvidia, nose-dived on the Kospi bourse Friday as the market reopened for the first time this week, following the release of a low-cost AI model by Chinese startup DeepSeek.

Samsung Electronics (SSNLF) received approval to supply its high-bandwidth memory, or HBM, chips to Nvidia (NVDA).

SK Hynix Inc. shares tumbled more than 11%, as the South Korean stock market resumed trading Friday after holidays during which Chinese startup DeepSeek shocked the AI world.Most Read from BloombergMa

SK Hynix CFO Kim Woohyun said that the outlook for memory demand in 2025 was clouded by inventory adjustments, protective trade policies and geopolitical risks.

Nvidia (NASDAQ:NVDA) has approved Samsung Electronics (KS:005930) 8-layer HBM3E chips for artificial intelligence applications, Bloomberg reported. The chips will be used in Nvidias AI products for China,

SK Hynix's shares slumped, hit by the shock from Chinese artificial-intelligence startup DeepSeek as stock trading resumed in South Korea after a four-day holiday.

SK hynix has just posted its best-ever yearly earnings for 2024: $46.1 billion in sales, revenues increased by 102% thanks to HBM and AI demand.

Asian equities fell Friday (Jan 31), as concerns over the impact DeepSeek will have on the artificial intelligence market pressured South Korean chipmakers. US futures climbed after robust results from Apple Inc.

South Korea's SK Hynix forecast sales of its high-end semiconductors used in generative artificial intelligence chipsets would more than double this year, after reporting a quarterly profit record that beat a results estimate for rival Samsung.

The company’s Q4 revenue increased by 12%, and its operating profit rose by 15%, making for its best quarter ever, SK Hynix said in a statement. The company also announced that its revenue for the year was 66.1930 trillion won (roughly $46.13 billion). SK Hynix raised its annual fixed dividend for shareholders by 25%.

SK Hynix reports record Q4 earnings, driven by strong AI memory chip sales. Outlook for 2025 dims amid inventory adjustments and geopolitical risks.

SK Hynix Inc., a major supplier of memory chips, has announced record quarterly earnings. However, investors have reacted cautiously. Concerns about smartphone demand and future AI spending have tempered enthusiasm.