SK Hynix reports highest profit in 6 years due to AI chip demand

From CNBC: 2024-07-24 21:36:30

SK Hynix reported second-quarter results with revenue at 16.42 trillion Korean won and operating profit at 5.47 trillion Korean won, the highest in 6 years. Revenue was up 124.7% from the previous year, driven by AI memory chip demand. Shares fell 7.81% as tech stocks struggled. The company plans to mass produce 12-layer HBM3E products. Memory leaders like SK Hynix are expanding HBM capacity to meet AI processor demand and struggling with tight supply of conventional DRAM.
Additionally, SK Hynix expects a tight supply of high-end memory chips this year due to explosive AI adoption. Large language models require high-performance memory chips, leading to a favorable price environment for the company. SK Hynix has been leading the HBM chip market, with plans to ship the next generation HBM4 in the second half of 2025.



Read more at CNBC:: Nvidia supplier SK Hynix posts highest profit in 6 years on AI chip boom