SK Hynix reports record jump in profit as demand for AI chips soars
SK Hynix reported a bigger-than-expected 68% jump in operating income in the June quarter. The South Korean chipmaker, a key supplier to AI giant Nvidia, said new model launches by customers would drive high-end AI chip demand growth, and that it was on track to double HBM chip sales for the full year.
South Korea’s SK Hynix indicated it would increase spending on advanced chipmaking after posting a record quarterly profit, boosted by strong demand for AI chips and customers stockpiling ahead of potential US tariffs, according to Reuters.
The company reported a higher-than-expected 68% spike in operating income in the June quarter.
SK Hynix, which is a key supplier to AI giant Nvidia, said new model launches by customers would drive high-end AI chip demand growth, and that it was on track to double HBM chip sales for the full year.
Revenue rose over 35% in the quarter compared with the same period from last year. On a quarter-on-quarter basis, revenue rose 26%, while operating profit jumped 24%, according to CNBC.
“CAPEX is expected to increase compared to our previous plans, with most of the investment going toward equipment for HBM product,” SK Hynix CFO Kim Woo-hyun told an earnings conference call, according to the Reuters report.
SK Hynix is planning to complete preparations for mass production of its next-gen memory, HBM4, before the end of 2025. Samsung and Micron Technology are SK Hynix’s key competitors in the HBM space, but for the moment SK Hynix seems to be maintaining its leadership position.
