Seoul: South Korean chipmaking giant SK hynix Inc. announced on Thursday that its second-quarter operating profit has exceeded 9 trillion won (US$6.53 billion) for the first time. The surge in profits is attributed to the booming demand for artificial intelligence (AI) chips, including high bandwidth memory (HBM).
According to Yonhap News Agency, the company revealed in a regulatory filing that it achieved a record operating profit of 9.21 trillion won for the April-June period, marking a 68.5 percent increase from the previous year and setting a new quarterly record. Revenue rose by 35.4 percent year-on-year to 22.23 trillion won, while net income surged by 69.8 percent to 6.99 trillion won. Both operating profit and sales surpassed the previous all-time highs set in the fourth quarter of last year.
The robust earnings results led to a 2.42 percent increase in SK hynix shares, reaching 275,500 won as of 10:17 a.m., significantly outperforming the broader Korea Composite Stock Price Index (KOSPI), which rose by 0.66 percent. SK hynix attributed the record-breaking performance to strong AI-related demand, reinforcing its position as a global leader in HBM technology.
"Aggressive investments by global big tech companies in AI led to a steady increase in demand for AI memory," the company stated. "Shipments of both DRAM and NAND flash were higher than expected, helping the company log the best quarterly results in its history." The sales of its 12-layer HBM3E products and NAND flash memory expanded in the second quarter, contributing to the positive earnings trend, driven by its "industry-leading competitiveness in AI memory and profitability-first management discipline."
SK hynix noted that inventory levels remained stable in the three-month period ending in June due to increased memory orders and shipments of finished products. The company expects memory demand to continue growing in the second half as major customers plan to launch new products. Additionally, it forecasts stronger demand for high-performance and high-capacity memory chips amid global competition to enhance AI model inference capabilities.
The company also highlighted ongoing investments by nations to build sovereign AI infrastructure, which are expected to generate long-term memory demand. To meet the growing need, SK hynix plans to double its HBM output this year, leveraging its production capabilities and the outstanding performance of its products. It also aims to provide HBM4, the sixth-generation HBM, based on customer timelines to remain competitive in the AI memory race.
Furthermore, SK hynix mentioned that some of this year's planned investments will be frontloaded to facilitate a smoother supply of key products, including HBM, in 2026. "We are on track to meet our goal as a 'full stack AI memory provider,' satisfying customers and leading the market expansion through the timely launch of products with best-in-class quality and performance required by the AI ecosystem," said Song Hyun-jong, president and head of the Corporate Center at SK hynix.
Regarding concerns over a potential decline in chip demand in the second half, following higher-than-expected supply in the first half, the company projected no significant change in demand for the remainder of the year. "In the second quarter, memory suppliers, including SK hynix, and their clients maintained low inventory levels due to strong product demand. As a result, production in the second half is expected to lead to increased supply," said Kim Kyu-hyun, head of the DRAM Marketing division, during the company's earnings conference call.
When asked about its operations in China, SK hynix stated it will continue operating its Chinese plants in compliance with U.S. trade regulations, emphasizing that its manufacturing facilities in China are "very important" to the business. SK hynix currently operates plants in South Korea and China.