A customer appears at a mannequin of SK hynix’s high-bandwidth reminiscence (HBM) know-how in the course of the 2025 World IT Present in Seoul on April 24, 2025.
Jung Yeon-je | Afp | Getty Pictures
South Korea’s SK Hynix on Wednesday posted file quarterly income and revenue, boosted by a powerful demand for its excessive bandwidth reminiscence utilized in generative AI chipsets.
The corporate is seeking to develop manufacturing capability in 2026, with its deliberate provide of reminiscence merchandise for 2026 already offered out.
Listed below are SK Hynix’s third-quarter outcomes versus LSEG SmartEstimates, that are weighted towards forecasts from analysts who’re extra persistently correct:
- Income: 24.45 trillion received ($17.13 billion) vs. 24.73 trillion received
- Working revenue: 11.38 trillion received vs. 11.39 trillion received
Income rose about 39% within the September quarter in contrast with the identical interval a 12 months earlier, whereas working revenue surged 62%, 12 months on 12 months.
On a quarter-on-quarter foundation, income was up 10%, whereas working revenue grew 24%. In its earnings launch, the corporate famous that the quarterly working revenue had surpassed 10 trillion received for the primary time.
Following the report, SK Hynix shares in South Korea popped over 5%, boosting its inventory rally previous 210% this 12 months.
SK Hynix makes reminiscence chips which might be used to retailer knowledge and could be present in every thing from servers to shopper gadgets akin to smartphones and laptops.
The corporate has benefited from a increase in synthetic intelligence as a key provider of high-bandwidth reminiscence or HBM chips used to energy AI knowledge middle servers.
“As demand throughout the reminiscence section has soared on account of prospects’ increasing investments in AI infrastructure, SK Hynix as soon as once more surpassed the record-high efficiency of the earlier quarter on account of elevated gross sales of excessive value-added merchandise,” SK Hynix stated in an announcement.
HBM falls into the broader class of dynamic random entry reminiscence, or DRAM — a kind of semiconductor reminiscence used to retailer knowledge and program code that may be present in PCs, workstations and servers.
The corporate stated it should start supplying its next-generation HBM4 chips within the present quarter, following negotiations with unspecified prospects. The chips characterize the sixth era of HBM know-how.
HBM chief
SK Hynix has set itself aside within the DRAM market by getting an early lead in HBM and establishing itself as the primary provider to the world’s main AI chip designer, Nvidia.
Nonetheless, its major opponents, U.S.-based Micron and South Korean-based tech large Samsung, have been working to catch up within the area.
Micron has already equipped Nvidia with a few of its HBM know-how, whereas Samsung lately handed Nvidia’s qualification checks for a sophisticated HBM product, based on a neighborhood report final month.
“With the innovation of AI know-how, the reminiscence market has shifted to a brand new paradigm and demand has begun to unfold to all product areas,” SK Hynix Chief Monetary Officer Kim Woohyun stated within the earnings launch.
“We’ll proceed to strengthen our AI reminiscence management by responding to buyer demand by means of market-leading merchandise and differentiated technological capabilities,” he added.
The HBM market is predicted to proceed to increase over the following few years to round $43 billion by 2027, giving sturdy earnings leverage to reminiscence producers akin to SK Hynix, MS Hwang, analysis director at Counterpoint Analysis, instructed CNBC.
“[F]or SK Hynix to proceed producing earnings, it’s going to be vital for the corporate to take care of and improve its aggressive edge,” he added.
A report from Counterpoint Analysis earlier this month confirmed that SK Hynix held a number one 38% share of the DRAM market by income within the second quarter of the 12 months, rising its shares after having overtaken Samsung within the first quarter.
The report added that the worldwide HBM market grew 178% 12 months over 12 months within the second quarter, and SK Hynix dominated the area with a 64% share. Samsung will report its earnings on Thursday.
Ray Wang, lead semiconductor analyst at Futurum Group, instructed CNBC that he expects SK Hynix to take care of its dominant management within the HBM market by means of subsequent 12 months, because of its technological edge.
“The corporate is prone to maintain round 60% international HBM market share, underpinned by its place as the first provider to key prospects akin to Nvidia, Google and different main prospects,” he added.
