SK Hynix Posts Record Profit of 7.03 Trillion Won on AI Chip Demand

Oct 24, 2024, 01:11 AM

SK Hynix has posted record quarterly profit and revenue for Q3 2024, driven by strong demand for AI chips. The company's revenue surged 94% year-over-year to approximately $12.7 billion, while operating profit reached around $5.1 billion, surpassing expectations. Operating profit for the third-quarter hit a record 7.03 trillion won ($5.08 billion), beating LSEG’s forecast of 6.8 trillion won. A significant portion of this growth is attributed to the high demand for high bandwidth memory (HBM) chips, which accounted for 30% of SK Hynix's DRAM revenue in Q3 and is expected to rise to 40% in Q4. The company anticipates that HBM demand will continue to outpace supply in the coming year. SK Hynix's success is closely tied to its role as a supplier for Nvidia, which has also benefited from the AI boom.