From CNBC: 2025-01-23 04:09:24

South Korea’s SK Hynix, a major memory chipmaker, reported record quarterly earnings due to strong sales of high bandwidth memory for AI chipsets. Despite this, SK Hynix shares fell 2.7% as CFO Kim Woohyun warned of uncertain memory demand in 2025 due to various factors. The company’s fourth-quarter revenue was 19.77 trillion won ($13.7 billion), up 75% year on year, with operating profit reaching 8.08 trillion won ($5.6 billion), a 2,236% increase.

SK Hynix’s revenue in the October-December quarter rose 12% quarter-on-quarter, while operating profit grew 15% to a record high. The company is a key supplier to Nvidia and has benefitted from the AI server boom. SK Hynix’s HBM technology and profitability-focused operations were key factors in achieving these results. The chipmaker’s yearly revenue and operating profit also set new records in 2024.

Despite uncertainties in 2025, SK Hynix expects continued growth in sales of HBM and other DRAM products as tech companies invest in AI servers and AI model training gains momentum. The company sees potential expansion in the consumer market for PC and smartphones with AI capabilities. The memory industry is shifting towards high-performance, high-quality products, with DRAM and NAND demand expected to increase.

Analysts noted SK Hynix’s strong fourth-quarter earnings, but cautioned about potential market adjustments. The company’s shares have risen by 29% this year. SK Hynix plans a “slight increase” in capital expenditure for 2025. Despite concerns, the company remains optimistic about future sales growth and maintaining a leadership position in the HBM market.



Read more at CNBC:: Nvidia supplier SK Hynix posts record quarterly profit on strength of AI boom