'HBM Leads the Way': SK Hynix Reports Record-High Q2 Operating Profit of 9.21 Trillion Won

Record High Surpasses Last Year's Fourth Quarter
Operating Profit Up 70% Year-on-Year
DRAM and NAND Shipments Exceed Expectations

SK Hynix achieved its highest-ever quarterly performance in the second quarter of this year, driven by sales of its fifth-generation high-bandwidth memory (HBM), the HBM3E 12-layer product. This result exceeded market expectations, which had initially forecasted sales in the 20 trillion won range. With shipment volumes of both DRAM and NAND flash surpassing projections, the company once again posted an "earnings surprise" following a strong first quarter.

On July 24, SK Hynix announced in a regulatory filing that its consolidated operating profit for the second quarter of this year was provisionally tallied at 9.2129 trillion won, a 68.5% increase compared to the same period last year. Revenue reached 22.232 trillion won, up 35.4% year-on-year. Net profit was 6.9962 trillion won, representing a 69.8% increase. The operating margin also remained in the 40% range at 41%, following 42% in the previous quarter.

SK Hynix broke its previous records for both revenue and operating profit, surpassing the previous all-time high set in the fourth quarter of last year (revenue of 19.767 trillion won and operating profit of 8.0828 trillion won), and achieved its best-ever quarterly results.

Sales of HBM used in artificial intelligence (AI) accelerators drove the strong performance. Last year, SK Hynix became the first company in the world to mass-produce the HBM3E 12-layer product and has been supplying it in large quantities to Nvidia. According to SK Hynix, "Global big tech companies have been actively investing in AI, leading to a steady increase in demand for AI memory."

SK Hynix headquarters in Icheon-si, Gyeonggi-do. Photo by Yonhap News.

In particular, both DRAM and NAND flash shipments exceeded expectations, contributing to the record-breaking results. SK Hynix stated, "DRAM sales were significantly boosted by the ramp-up of HBM3E 12-layer products, and NAND sales increased across all applications," adding, "We have maintained strong performance based on industry-leading AI memory competitiveness and a focus on profitability."

Market observers predict that operating profit in the third and fourth quarters could exceed 10 trillion won. SK Hynix explained that as customers increased memory purchases during the second quarter, the production of finished set products also rose, keeping inventory levels stable. The company expects memory demand to continue growing in the second half as customers prepare to launch new products. Additionally, SK Hynix anticipates that competition among big tech companies to enhance AI model inference capabilities will further drive demand for high-performance, high-capacity memory. Furthermore, the company predicts that investments by various countries in building "sovereign AI" will become a new long-term growth driver for memory demand.

In response, the company plans to double its HBM output year-on-year to ensure stable performance. SK Hynix is also preparing to supply HBM4, targeted for mass production in the second half of this year, on schedule. Song Hyunjong, President of SK Hynix, stated, "To ensure a smooth supply of key products such as HBM with clear demand visibility for next year, we will make some preemptive investments this year," adding, "We aim to grow as a 'full-stack AI memory provider' by launching the highest-quality, highest-performance products demanded by the AI ecosystem on time, thereby driving both customer satisfaction and market growth."

This content was produced with the assistance of AI translation services.