In a major financial turnaround, South Korean semiconductor giant SK Hynix reported a record quarterly profit, buoyed by surging demand for high bandwidth memory (HBM) in the AI sector. The company posted an operating profit of 7.03 trillion won ($5.08 billion) in the third quarter, surpassing analyst expectations and rebounding from a substantial loss during the same period last year. Revenue soared by 94% year-on-year to 17.57 trillion won, despite falling slightly short of forecasts.
This impressive recovery is largely attributed to increased sales of premium products like HBM and eSSD, fueled by heightened demand from data center clients and major tech enterprises investing in AI. The demand for HBM, a DRAM variant that stacks chips vertically for enhanced performance and efficiency, has surged, with sales more than tripling from the previous year. SK Hynix forecasts continued growth in AI-related memory demand, alongside steady gains in the PC and mobile sectors boosted by AI-optimized devices.
Kim Woo-Hyun, head of DRAM marketing, expressed optimism over the industry’s recovery from its recent downturn caused by oversupply and geopolitical tensions, signaling the company’s strategy to strengthen production capacity in areas of competitive advantage. SK Hynix’s shares initially dipped but later rebounded, reflecting investor confidence in the company’s promising outlook.
Original Story https://www.cnbc.com/2024/10/24/nvidia-supplier-sk-hynix-posts-record-quarterly-profit-beating-expectations.html
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