SK Hynix, Key Nvidia (NVDA) HBM Supplier, Posts Record Q2 Earnings

by MarketNewsData

SK Hynix’s latest results of July 23, 2025 offer critical insights for Nvidia investors, as the Korean chipmaker—Nvidia’s main HBM supplier—delivered record performance and signaled confidence in future AI-driven demand.

💥 Q2 2025 Performance (YoY)

  • Revenue: ₩22.2 trillion (~$16.1B), +35%
  • Operating Profit: ₩9.2 trillion (~$6.7B), +69%
  • Key Driver: Surging demand for high-bandwidth memory (HBM3/3E) used in Nvidia’s AI GPUs

🔧 Nvidia Relevance

  • HBM Supply Backbone: SK Hynix is Nvidia’s primary supplier for HBM3 and HBM3E chips—key to training and inference workloads in GPUs like H100 and Blackwell B200.
  • Doubling HBM Output: Hynix reaffirmed it’s on track to double HBM chip sales in 2025 to meet AI customer demand, led by Nvidia.
  • CapEx Boost: The company increased its investment budget to expand HBM capacity and prepare for mass production of HBM4—critical for next-gen AI accelerators.
  • Outpacing Samsung: Hynix has overtaken Samsung in HBM tech leadership, gaining more share of Nvidia’s future orders.

⚠️ Strategic Considerations for Nvidia

  • Pricing Power Shift: SK Hynix’s dominance could support better pricing control, but HBM price softness may also signal broader memory cycle shifts.
  • Geopolitical Risk: Tariff tensions between the U.S. and China could affect SK Hynix’s cross-border shipments, potentially impacting Nvidia’s supply chain.
  • Supply Chain Dependence: With SK Hynix leading the HBM3E race, Nvidia’s near-term reliance on a single supplier may raise risk unless Samsung or Micron catches up.

🧩 Final Take

SK Hynix’s blockbuster earnings solidify its role as a critical pillar in Nvidia’s AI expansion. The continued ramp in HBM production and investments toward HBM4 bode well for Nvidia’s future GPU roadmap—but investors should stay alert to macro and geopolitical headwinds that could tighten this vital link.

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