A visitor looks at a model of SK hynix’s high-bandwidth memory (HBM) technology during the 2025 World IT Show in Seoul on April 24, 2025.
Jung Yeon-je | Afp | Getty Images
South Korea’s SK Hynix on Wednesday posted record quarterly revenue and profit, boosted by a strong demand for its high bandwidth memory used in generative AI chipsets.
Here are SK Hynix’s third-quarter results versus LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:
Revenue: 24.45 trillion won ($17.13 billion) vs. 24.73 trillion wonOperating profit: 11.38 trillion won vs. 11.39 trillion won
Revenue rose about 39% in the September quarter compared with the same period a year earlier, while operating profit surged 62%, year on year.
On a quarter-on-quarter basis, revenue was up 10%, while operating profit grew 24%.
SK Hynix makes memory chips that are used to store data and can be found in everything from servers to consumer devices such as smartphones and laptops.
The company has benefited from a boom in artificial intelligence as a key supplier of high-bandwidth memory or HBM chips used to power AI data center servers.
“As demand across the memory segment has soared due to customers’ expanding investments in AI infrastructure, SK Hynix once again surpassed the record-high performance of the previous quarter due to increased sales of high value-added products,” SK Hynix said in its earnings release.
HBM falls into the broader category of dynamic random access memory, or DRAM — a type of semiconductor memory used to store data and program code that can be found in PCs, workstations and servers.
SK Hynix has set itself apart in the DRAM market by getting an early lead in HBM and establishing itself as the main supplier to the world’s leading AI chip designer, Nvidia.
However, its main competitors, U.S.-based Micron and South Korean-based tech giant Samsung, have been working to catch up in the space.
Micron has already supplied Nvidia with some of its HBM technology, while Samsung recently passed Nvidia’s qualification tests for an advanced HBM product, according to a local report last month.
“With the innovation of AI technology, the memory market has shifted to a new paradigm and demand has begun to spread to all product areas,” SK Hynix Chief Financial Officer Kim Woohyun said in the earnings release.
“We will continue to strengthen our AI memory leadership by responding to customer demand through market-leading products and differentiated technological capabilities,” he added.
The HBM market is expected to continue to boom over the next few years to around $43 billion by 2027, giving strong earnings leverage to memory manufacturers such as SK Hynix, MS Hwang, research director at Counterpoint Research, told CNBC.
“[F]or SK Hynix to continue generating profits, it’ll be important for the company to maintain and enhance its competitive edge,” he added.
A report from Counterpoint Research earlier this month showed that SK Hynix held a leading 38% share of the DRAM market by revenue in the second quarter of the year, increasing its shares after having overtaken Samsung in the first quarter.
The report added that the global HBM market grew 178% year over year in the second quarter, and SK Hynix dominated the space with a 64% share.
Samsung will report earnings on Thursday.
