Key facts
- SK Hynix reported a record Q2 net profit of 93.92 trillion won, up 1,242.5% year-over-year.
- Operating income rose 557.2% to 60.54 trillion won, and sales increased 256.8% to 79.31 trillion won.
- The company's operating profit margin hit a record 76% in the second quarter.
- SK Hynix leads the global HBM market with a 58% share and is a key supplier to Nvidia.
- The strong results exceeded market expectations for net profit.
South Korean chipmaker SK Hynix Inc. reported record-breaking financial results for the second quarter, driven by a surge in demand for high bandwidth memory (HBM) chips and other memory products amid an AI chip supercycle. The company's net profit reached 93.92 trillion won (US$64.6 billion), marking a substantial 1,242.5 percent increase from the previous year. Operating income also saw a significant jump of 557.2 percent to 60.54 trillion won, with sales climbing 256.8 percent to 79.31 trillion won. The operating profit margin hit a new high of 76 percent for the quarter.
These results exceeded market expectations, which had an average net profit estimate of 63.55 trillion won. The strong performance is expected to alleviate investor concerns about a potential AI bubble and the peak demand for AI chips, which had recently led to a decline in technology stocks. SK hynix has solidified its position as a leader in the HBM market, partly due to its early development of these advanced chips and its role as a key supplier to Nvidia, a major player in AI accelerators.
In the first quarter, SK hynix held a 58 percent share of the global HBM market by revenue, maintaining its leading position. This market dominance helped SK hynix overtake its long-time rival, Samsung Electronics, to become South Korea's most valuable listed company by market capitalization for the first time in 25 years in June.