SK Hynix Reports Record Profit Driven by AI Memory Chip Demand

SK Hynix Inc. (000660.KS) announced a record quarterly profit, driven by its leadership position in advanced memory chips for datacenters and artificial intelligence (AI) development.

Key Highlights:

* Operating profit of 8.08 trillion won ($5.6 billion) in the December quarter, meeting analysts' estimates.
* Revenue jumped 75% year-over-year.
* Annual dividend increased by 25% to 1,500 won per share.

Market Dominance:

SK Hynix maintains its dominance in high-bandwidth memory (HBM), essential for AI training. This advantage has helped the company gain market share from rival Samsung Electronics Co. (SSNLF).

AI Infrastructure Demand:

Despite concerns about a slowdown in global datacenter spending, SK Hynix sees continued demand for AI infrastructure. SoftBank Group Corp., OpenAI, and other major players are investing heavily in datacenters.

HBM Chip Revenue:

HBM contributed 40% of SK Hynix's overall DRAM chip revenue in the quarter. The company predicts continued growth as AI server investment and inference capabilities increase.

Second-Half Pickup:

SK Hynix expects inventory adjustments in the consumer market but anticipates growth in PC and smartphone sales with AI features.

Samsung's Competition:

Samsung recently unveiled its Galaxy S25 series with enhanced AI capabilities. However, SK Hynix has a significant lead in HBM design and supply.

2025 HBM4 Timeline:

SK Hynix aims to deliver HBM4 chips to customers in the second half of 2025, reaffirming its commitment to advanced memory technology.

Industry Outlook:

SK Hynix's strong market share and solid operating margin indicate its continued dominance in the HBM market. However, the company faces potential challenges from Samsung's ambitions to catch up and the complexity of Nvidia's qualification process for next-generation AI memory.