SK Hynix, a leading memory chip manufacturer, announced its highest quarterly profit in six years on Thursday, driven by robust demand for advanced memory chips essential for artificial intelligence (AI) computing.<\/p>\n
For the second quarter, SK Hynix reported revenue of 16.42 trillion Korean won (approximately $11.86 billion), slightly exceeding the forecast of 16.4 trillion won. Operating profit reached 5.47 trillion won, surpassing the estimated 5.4 trillion won and marking a significant turnaround from a loss of 2.88 trillion won in the same quarter of the previous year.<\/p>\n
The company\u2019s revenue surged 124.7% year-over-year from 7.3 trillion won, setting a record for the highest quarterly revenue in its history. The increase was attributed to rising prices for memory products, driven by strong demand for high-bandwidth memory (HBM) used in AI applications.<\/p>\n
Despite the strong earnings report, SK Hynix\u2019s shares fell by up to 7.81% on Thursday morning, reflecting broader market trends. The decline followed a drop in South Korea\u2019s Kospi index by 1.91%, influenced by disappointing earnings reports from major U.S. tech companies like Alphabet and Tesla.<\/p>\n
Looking ahead, SK Hynix expects continued robust demand for AI servers and a gradual recovery in conventional markets, including AI-enabled PCs and mobile devices. The company plans to maintain its leadership in the HBM market by starting mass production of its 12-layer HBM3E products this quarter, with shipments expected to begin in the fourth quarter.<\/p>\n
The expansion of HBM capacity is critical, as HBM chips require more wafer capacity than standard dynamic random-access memory (DRAM). SK Hynix anticipates increased investment to meet both HBM and conventional DRAM demands, with higher capital expenditures for the year compared to initial expectations.<\/p>\n
Analysts predict that tight supply for HBM and DRAM will persist until at least 2025, driven by the explosive growth in AI applications and high-performance computing needs. SK Hynix, a key supplier of HBM3 chips to Nvidia, faces competition from rivals such as Samsung, which is also entering the HBM3 market.<\/p>\n
Looking forward, SK Hynix aims to ship the next-generation 12-layer HBM4 starting in the second half of 2025, continuing its position as a leader in the high-bandwidth memory market amidst growing global demand for AI technologies.<\/p>\n","protected":false},"excerpt":{"rendered":"
The South Korean memory chipmaker sees record revenue and operating profit amid strong AI-related demand, despite a drop in share price.<\/p>\n","protected":false},"author":331,"featured_media":48293,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[3928,15026,4745],"class_list":["post-48292","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-markets","tag-shares","tag-sk-hynix","tag-tech"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=48292"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48292\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/48293"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=48292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=48292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=48292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}