Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang has requested SK Hynix Inc. (OTC:HXSCF) to expedite the supply of its next-generation high-bandwidth memory chips by six months.

What Happened: The request was made during a meeting between Huang and SK Group Chairman Chey Tae-won, reported Reuters on Monday. SK Hynix had previously announced its plan to provide the chips to clients in the second half of 2025, a timeline that was already ahead of the initial target.

The demand for high-capacity, energy-efficient chips for Nvidia's graphic processing units, used in AI technology development, has been on the rise. Nvidia currently holds over 80% of the global AI chip market.

SK Hynix, a leading player in the global race to meet the surging demand for HBM chips, is facing intensified competition from companies like Samsung Electronics (OTC:SSNLF) and Micron Technology (NASDAQ:MU).

The company is also planning to supply the latest 12-layer HBM3E to an undisclosed customer this year and intends to ship samples of the more advanced 18-layer HBM3E early next year.

Why It Matters: The demand for AI technology has been a significant driver of growth for SK Hynix. The company reported a record-breaking quarterly profit in October, with a 7% revenue surge, largely attributed to the rising demand for AI technology.

Despite Samsung's soaring profits, its delays in Nvidia's certification for AI memory chips have allowed competitors like SK Hynix and Micron Technology to take the lead in high-bandwidth memory.

SK Hynix's commencement of mass production of their latest high-bandwidth memory chips in September positioned the company ahead in the competitive race to meet the growing demand driven by artificial intelligence advancements.

SK Hynix plans to invest $6.8 billion in a new production facility in South Korea, as part of a larger commitment to invest 120 trillion won in the construction of four fabs in the Yongin cluster.

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote