SK hynix Records All-Time High Q1 Operating Profit of 37.6 Trillion Won...Operating Margin Surpasses Even Nvidia (Comprehensive)
by Kwon Hyeonji
Published 23 Apr.2026 10:28(KST)
Updated 23 Apr.2026 13:44(KST)
Previous Quarter’s Record Broken in Just One Quarter
Sales Reach 52.6 Trillion Won, Ushering in the “50 Trillion Won Era”
Financial Soundness Strengthened With 35 Trillion Won Net Cash
Full Commitment to Expanding Supply Capabilities, Inclu
SK Hynix has once again solidified its status as the undisputed leader in AI memory by posting its highest-ever quarterly results, fueled by surging demand for artificial intelligence (AI) semiconductors.
On April 23, SK Hynix announced that it achieved sales of 52.5763 trillion won and an operating profit of 37.6103 trillion won in the first quarter. This shattered the previous all-time high sales (32.8267 trillion won) and operating profit (19.1696 trillion won) set just one quarter earlier. Notably, the company's revenue surpassed the 50 trillion won mark for the first time in a single quarter, while operating profit jumped 95% from the previous quarter to reach a record high.
These results far exceeded market expectations. Financial information provider FnGuide had estimated SK Hynix's consolidated first-quarter operating profit and sales consensus at 34.8753 trillion won and 50.1046 trillion won, respectively, but the company significantly outperformed both figures.
What stands out is SK Hynix's profitability, which eclipses its competitors. The company's first-quarter operating margin reached 72%, a sharp increase of 30 percentage points from 42% a year earlier. This outpaces global tech giants such as Nvidia (67.7%), TSMC (58.1%), and Samsung Electronics (43%). It is considered highly unusual for a global manufacturing company to post an operating margin in the 70% range.
Strong business performance also led to improved financial health. At the end of the first quarter, cash and cash equivalents had increased by 19.4 trillion won from the previous quarter to 54.3 trillion won, while debt decreased by 2.9 trillion won to 19.3 trillion won, resulting in a net cash position of 35 trillion won.
The remarkable performance was driven by robust sales of high-value-added products such as high-bandwidth memory (HBM), high-capacity server DRAM modules, and enterprise solid-state drives (eSSD), all boosted by increased investment in AI infrastructure. SK Hynix explained, "As AI evolves from the model training stage to real-time inference-what is called the 'Agentic AI' stage-demand for memory is spreading across both DRAM and NAND."
The shortage of memory semiconductors and subsequent price increases also fueled the strong results. Market research firm TrendForce estimated that contract prices for generic DRAM soared by 90-95% in the first quarter compared to the previous quarter. The industry estimates SK Hynix's operating margins for DRAM and NAND at 74% and 48%, respectively, with the operating margin for generic DRAM in particular projected to reach as high as 84%.
SK Hynix plans to respond to diverse AI memory demand by supplying new products across both DRAM and NAND. It aims to further strengthen its yield and quality competitiveness in HBM, while ramping up supply of LPDDR6-the world's first product manufactured using a 10nm-class (1nm = one billionth of a meter) 6th-generation (1c) process-and the next-generation 192GB SOCAMM2 module, which entered mass production this month.
The background behind these strong results and future market trends were further detailed by management. Woo-Hyun Kim, Chief Financial Officer (CFO) of SK Hynix, announced during the first-quarter earnings conference call on April 23 that the company plans to expand supply of sixth-generation HBM4 to Nvidia. Kim stated, "We are working closely with our customers from the early stages and are planning to ramp up volumes according to a schedule agreed upon for products that meet customer requirements." He also emphasized, "Since integrated execution capabilities-including performance, yield, quality, and supply stability-determine our competitiveness, we are concentrating our efforts on strengthening these areas."
Kim predicted that the shortage in memory supply will persist for the time being. He explained, "It is difficult for suppliers to increase supply in the short term," and added, "With supply shortages continuing, the memory price upcycle is likely to last longer than in previous cycles."
In response to these supply constraints, the company is accelerating efforts to expand its supply base. SK Hynix has begun construction of 'P&T7,' a dedicated AI memory packaging plant in Cheongju, North Chungcheong Province, with an investment of 19 trillion won. In addition, the company plans to significantly increase this year's investments compared to last year in order to boost the operating rate of the Cheongju M15X plant and to secure essential extreme ultraviolet (EUV) equipment for the semiconductor cluster in Yongin.
Aerial view of 'P&T7,' the AI memory packaging dedicated factory that SK Hynix is building in Cheongju, Chungbuk. SK Hynix
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