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SK Hynix Posts Record Quarterly Profit Driven by AI Chip Demand, 94% YoY Revenue Growth to $12.7B

Oct 24, 2024, 12:02 AM

SK Hynix has posted a record quarterly profit and revenue for Q3 2024, driven by strong demand for AI memory chips used with Nvidia processors. The company's revenue increased by 94% year-over-year to approximately $12.7 billion, slightly below the expected $13.2 billion. Operating profit reached 7.03 trillion won ($5.08 billion), surpassing the forecast of 6.8 trillion won. This surge in profitability is attributed to the growing AI market, with significant investments from Big Tech companies and the evolution of generative AI into multi-modal forms. Additionally, HBM sales grew more than 70% quarter-over-quarter and 330% year-over-year. The AI market is projected to grow from $200 billion to over $1 trillion by the end of the decade, offering substantial revenue opportunities for companies involved in AI development and application.