SK hynix Q1 net profit shoots up on HBM, beats market expectations
SK hynix Inc. said Thursday its first-quarter net profit more than quadrupled on rising demand for artificial intelligence chips, including high bandwidth memory, exceeding market expectations.
The world's second-largest memory chipmaker said in a regulatory filing that its net income reached 8.1 trillion won ($5.7 billion) for the January-March period, up from 1.92 trillion won a year earlier.
Its operating income soared 157.8 percent on-year to 7.44 trillion won for the quarter, compared with 2.88 trillion won a year ago. Revenue rose 41.9 percent to 17.63 trillion won.
Both operating profit and sales marked the second-best quarterly results following the record highs in the fourth quarter of last year.
The earnings exceeded market expectations. The average estimate of net profit by analysts stood at 5.48 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
SK hynix attributed the better-than-expected bottom line to strong demand for AI memory, solidifying its status as a world leader in HBM technology.
"The memory market ramped up faster than expected due to competition to develop AI systems and inventory accumulation demand," SK hynix said.
SK hynix said its annual HBM sales for 2025 are expected to double from those of 2024, with sales orders for 2025 already secured.
Its Chief Executive Officer Kwak Noh-jung previously mentioned that the company has sold out this year's HBM production, supplying its 12-layer HBM3E product to major customers, including Nvidia Corp.
Sales of 12-layer HBM3E, currently the most advanced HBM in mass production, are expected to account for over half of its total HBM3E sales in the second quarter.
For the sixth-generation HBM4 chips, SK hynix plans to complete preparations for mass production by the end of this year.
"SK hynix will focus on products with demand feasibility and profitability to enhance investment efficiency," Kim Woo-hyun, chief financial officer at SK hynix, said. "As an AI memory leader, we will strengthen collaboration with partners and carry out technological innovation in efforts to continue profit growth with industry-leading competitiveness." (Yonhap)
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