Nvidia supplier SK Hynix boosts investment plan after record Q2 profit
The Nvidia supplier (NVDA.O), opens new tab said it had lifted its 2025 capital expenditure plan, citing the need to support customers for advanced AI chips next year.
SK Hynix did not provide a specific investment target.
The company expects to double high-bandwidth memory (HBM) chip sales for the full year compared to 2024, it said.
"SK Hynix foresees that increasing competition among big tech companies to enhance inference of AI models would lead to higher demand for high-performance and high-capacity memory products," it said in a statement.
SK Hynix overtook Samsung Electronics (005930.KS), opens new tab as the world's top memory chip maker in the first quarter due to its leadership in HBM chips, a crucial component of AI chipsets designed by the likes of Nvidia that assist the processing of vast amounts of data to train AI models.
SK Hynix reported a 9.2 trillion won ($6.69 billion) operating profit for the April-June period, up 69% from 5.5 trillion won a year earlier.
That compared with a 9.0 trillion won average forecast by LSEG SmartEstimate, which is weighted toward analysts who are more consistently accurate. Revenue rose 35% to 22.2 trillion won during the quarter.
After posting a series of record profits boosted by strong AI demand, SK Hynix is bracing for potential U.S. tariffs and rising competition from rivals in supplying advanced chips to Nvidia, analysts say.
($1 = 1,374.5800 won)
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