SEOUL, July 24 (AJP) - SK hynix reported its strongest-ever quarterly results on Thursday, fueled by surging demand for high-performance memory chips used in artificial intelligence applications.
The South Korean chipmaker posted second-quarter revenue of 22.23 trillion won (about $16.3 billion), with operating profit reaching 9.21 trillion won ($6.8 billion) and net income rising to 6.99 trillion won ($5.1 billion), eclipsing its previous record set in the final quarter of 2024.
The company achieved an operating margin of 41 percent and a net profit margin of 31 percent — among the highest in the global semiconductor industry.
SK hynix attributed the stellar performance to robust sales of both DRAM and NAND flash products, driven by rising demand from global technology firms investing heavily in AI infrastructure.
In particular, sales of its high-bandwidth memory (HBM) products, including the advanced HBM3E 12-layer chip, played a pivotal role in driving revenue.
"Our strong results reflect SK hynix’s leadership in AI memory and our disciplined focus on profitability," the company said in a statement. It noted that NAND flash shipments outpaced expectations across multiple sectors, while DRAM sales surged on the back of growing adoption of HBM solutions.
The strong quarter bolstered the company’s financial position. Cash holdings rose by 2.7 trillion won from the previous quarter to 17 trillion won, while net borrowings declined by 4.1 trillion won. The company’s debt ratio stood at 25 percent, with a net debt ratio of just 6 percent. Inventory levels remained stable, aided by steady customer demand and ramped-up manufacturing of finished products.
SK hynix expects momentum to continue through the second half of the year, as major customers prepare new product launches and expand AI model deployments.
To meet rising demand, the company said it will roughly double HBM output this year compared to 2024 and expand production of AI-specific memory formats such as server LPDDR modules and next-generation GDDR7 chips for GPUs.
In a conference call with analysts, executives confirmed that the company plans to increase capital expenditures above earlier projections, with the majority of new investments dedicated to HBM-related equipment. The company has already sold out its 2025 HBM supply and is in final-stage negotiations with key clients — including Nvidia — to secure next year’s orders.
SK hynix is currently supplying its HBM3E 12-layer products to Nvidia and other major players and is preparing to begin mass production of its sixth-generation HBM4 chips in the second half of this year.
The company also signaled plans to optimize production by using its Chinese facilities for legacy DRAM manufacturing, while shifting advanced memory output to other sites.
It emphasized that operations in China will remain compliant with international regulations and continue supporting customers with long-term demand for DDR4 products.
In light of the U.S. government's recent approval for Nvidia's export of its H20 AI chip to China, SK hynix expressed cautious optimism about increased memory demand tied to those shipments.
President Song Hyun-jong said the company would move ahead with preemptive investments to secure HBM capacity, citing clear demand visibility into 2026.
“SK hynix aims to become a Full Stack AI Memory Provider,” he said, “by delivering timely, high-performance, and high-quality products that meet the evolving needs of the global AI ecosystem.”
reporter
Candice Kim
candicekim1121@ajupress.com
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