SK Hynix Soars with 62% Surge in Third-Quarter Profit, Shattering Records Amidst Nvidia Demand!
A visitor admires a model of SK Hynix’s high-bandwidth memory (HBM) technology during the 2025 World IT Show in Seoul on April 24, 2025. SK Hynix recently announced impressive quarterly results, posting record revenue and profit as demand for its high-bandwidth memory, crucial for generative AI applications, continues to soar. The South Korean semiconductor giant is gearing up to expand its production capacity by 2026, with its memory product supply for that year already sold out.
In its latest earnings report, SK Hynix revealed third-quarter results that showed revenue of 24.45 trillion won (approximately $17.13 billion) compared to the 24.73 trillion won predicted by LSEG SmartEstimates. Operating profit was reported at 11.38 trillion won, slightly short of the expected 11.39 trillion won. This marks a remarkable year-on-year revenue increase of about 39% and a 62% rise in operating profit. On a quarter-over-quarter basis, revenue rose by 10%, and operating profit increased by 24%, crossing the 10 trillion won threshold for the first time.
Following the positive earnings news, SK Hynix’s shares surged over 5%, contributing to a remarkable stock rally that has seen a 210% increase throughout the year. The company’s memory chips serve as essential components in various devices, including servers, smartphones, and laptops. With the rise of artificial intelligence, SK Hynix has solidified its role as a critical supplier of high-bandwidth memory chips for AI data center servers.
“As demand across the memory segment has soared due to customers’ expanding investments in AI infrastructure, SK Hynix once again surpassed the record-high performance of the previous quarter due to increased sales of high value-added products,” the company stated. HBM is part of the broader category of dynamic random access memory (DRAM), used for storing data and program code in PCs, workstations, and servers.
The company also announced plans to begin supplying its next-generation HBM4 chips this quarter, following negotiations with unnamed clients. This release marks the sixth generation of HBM technology. By establishing an early lead in this space, SK Hynix has positioned itself as a primary supplier to Nvidia, the world’s leading AI chip designer. However, competition is stiff, with Micron and Samsung striving to catch up. Micron has supplied Nvidia with some of its HBM technology, while Samsung recently passed Nvidia’s qualification tests for an advanced HBM product.
“With the innovation of AI technology, the memory market has shifted to a new paradigm and demand has begun to spread to all product areas,” stated SK Hynix Chief Financial Officer Kim Woohyun. He emphasized the company’s commitment to maintaining its leadership in AI memory through innovative, market-leading products.
According to industry analysis, the HBM market is forecasted to grow significantly, potentially reaching $43 billion by 2027. MS Hwang, a research director at Counterpoint Research, noted that for SK Hynix to sustain its profitability, it must enhance its competitive edge. Counterpoint’s recent findings indicate that SK Hynix held a commanding 38% share of the DRAM market by revenue in the second quarter, having overtaken Samsung recently. The global HBM market experienced a staggering 178% growth year-over-year in the same period, with SK Hynix capturing a dominant 64% share.
Ray Wang, lead semiconductor analyst at Futurum Group, expressed confidence in SK Hynix’s continued leadership in the HBM market through the upcoming year, supported by its technological advantages and strong client relationships with key players like Nvidia and Google. As the demand for high-performance memory continues to surge, SK Hynix remains well-positioned to capitalize on this expanding market.
Original Source: https://www.cnbc.com/2025/10/29/sk-hynix-q3-profit-revenue-record-.html
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Publish Date: 2025-10-29 09:21:00
