SK Hynix’s $6.8 Billion Chip Plant Investment Bolsters Nvidia Partnership
SK Hynix, a key supplier of high-bandwidth memory to Nvidia, plans to invest $6.8 billion in a new semiconductor plant in South Korea’s Yongin Semiconductor Cluster. This move strengthens SK Hynix’s position in the AI-driven chip market, where its partnership with Nvidia has been crucial.
The new fab, part of a larger four-plant commitment, will enhance SK Hynix’s capacity to meet growing demand for advanced memory chips used in AI applications. Construction is set to begin in March 2025 and complete in May 2027.
This strategic investment, riding on the success of its Nvidia collaboration, comes as SK Hynix reports its highest quarterly profit in six years, underscoring the booming AI chip market.
Small Cap Rally Shows Historic Potential, Says Principal Asset Management CIO
George Maris of Principal Asset Management identifies the current small cap sector strength as a rare and significant rotation. Small caps have outperformed large caps only twice in 30 years: during Covid-19 and the dot-com bubble. Maris believes this trend has staying power due to its historical nature and potential for broadening earnings. He predicts interest rate cuts will benefit small businesses, making the small cap sector an attractive investment opportunity. The Russell 2000’s recent performance supports this optimistic outlook.
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