SK Hynix Profit Soars 406%, TSMC Builds Arizona Plant to Boost Nvidia Supply
SK Hynix posted a 406% jump in Q1 operating profit to 37.6 trillion won, and TSMC has begun constructing an advanced chip packaging plant in Arizona due online by 2029 to ease supply bottlenecks for Nvidia’s AI GPUs. Analysts value Nvidia at nearly $5 trillion and forecast stronger upside versus peers.
1. SK Hynix Profit Surge
SK Hynix posted 37.6 trillion won in Q1 operating profit, up 406% year-over-year, driven by strong demand for both advanced and conventional memory chips used in Nvidia’s GPUs. This performance met consensus forecasts and highlights robust component supply for Nvidia’s AI production pipeline.
2. TSMC Arizona Packaging Plant
TSMC has commenced construction on an advanced packaging facility in Arizona, aiming to deploy CoWoS and 3D-IC capabilities by 2029. The expansion is designed to localize critical packaging steps, reduce turnaround times and alleviate bottlenecks for Nvidia’s multi-chip AI modules.
3. Nvidia Valuation and Analyst Outlook
Nvidia’s market capitalization has approached $5 trillion, reflecting its leadership in AI acceleration. Industry analysts rank Nvidia as the top AI chip investment with stronger upside potential compared to competitors such as AMD and growing CPU-based solutions from Intel.