SK Hynix reported another record quarter, with operating profit reaching 37.61 trillion won ($25.5 billion) and revenue at 52.58 trillion won, although the latter fell short of analyst expectations. The company’s performance was buoyed by surging demand for high-bandwidth memory (HBM) chips, crucial for AI infrastructure, which has nearly tripled revenue year-over-year and led to an all-time high operating margin of 72%. Despite a seasonal downturn, strong demand persisted, reflecting the ongoing boom in AI-related investments.
The memory chip sector is experiencing significant growth, with the DRAM market seeing a 30% quarter-over-quarter increase in recent months. SK Hynix’s dominance in HBM, where it holds a 57% market share, positions it favorably against competitors like Micron and Samsung, despite Samsung regaining the lead in overall DRAM revenue.
Market professionals should note the ongoing memory shortage, driven by escalating HBM demand, which SK Group Chairman Chey Tae-won predicts could last until 2030, suggesting sustained pricing power and potential supply chain challenges ahead.
Source: cnbc.com