A customer appears to be like at a mannequin of SK hynix’s high-bandwidth reminiscence (HBM) expertise in the course of the 2025 World IT Present in Seoul on April 24, 2025.
Jung Yeon-je | Afp | Getty Photos
South Korea’s SK Hynix on Wednesday posted file quarterly income and revenue, boosted by a robust demand for its excessive bandwidth reminiscence utilized in generative AI chipsets.
Listed below are SK Hynix’s third-quarter outcomes versus LSEG SmartEstimates, that are weighted towards forecasts from analysts who’re extra persistently correct:
- Income: 24.45 trillion received ($17.13 billion) vs. 24.73 trillion received
- Working revenue: 11.38 trillion received vs. 11.39 trillion received
Income rose about 39% within the September quarter in contrast with the identical interval a 12 months earlier, whereas working revenue surged 62%, 12 months on 12 months.
On a quarter-on-quarter foundation, income was up 10%, whereas working revenue grew 24%.
SK Hynix makes reminiscence chips which can be used to retailer knowledge and could be present in the whole lot from servers to client gadgets reminiscent of smartphones and laptops.
The corporate has benefited from a growth in synthetic intelligence as a key provider of high-bandwidth reminiscence or HBM chips used to energy AI knowledge heart servers.
“As demand throughout the reminiscence section has soared as a consequence of prospects’ increasing investments in AI infrastructure, SK Hynix as soon as once more surpassed the record-high efficiency of the earlier quarter as a consequence of elevated gross sales of excessive value-added merchandise,” SK Hynix stated in its earnings launch.
HBM falls into the broader class of dynamic random entry reminiscence, or DRAM — a kind of semiconductor reminiscence used to retailer knowledge and program code that may be present in PCs, workstations and servers.
SK Hynix has set itself aside within the DRAM market by getting an early lead in HBM and establishing itself as the primary provider to the world’s main AI chip designer, Nvidia.
Nonetheless, its important rivals, U.S.-based Micron and South Korean-based tech large Samsung, have been working to catch up within the house.
Micron has already provided Nvidia with a few of its HBM expertise, whereas Samsung just lately handed Nvidia’s qualification assessments for a complicated HBM product, based on a neighborhood report final month.
“With the innovation of AI expertise, the reminiscence market has shifted to a brand new paradigm and demand has begun to unfold to all product areas,” SK Hynix Chief Monetary Officer Kim Woohyun stated within the earnings launch.
“We are going to proceed to strengthen our AI reminiscence management by responding to buyer demand by market-leading merchandise and differentiated technological capabilities,” he added.
The HBM market is predicted to proceed to growth over the subsequent few years to round $43 billion by 2027, giving sturdy earnings leverage to reminiscence producers reminiscent of SK Hynix, MS Hwang, analysis director at Counterpoint Analysis, informed CNBC.
“[F]or SK Hynix to proceed producing earnings, it will be necessary for the corporate to keep up and improve its aggressive edge,” he added.
A report from Counterpoint Analysis earlier this month confirmed that SK Hynix held a number one 38% share of the DRAM market by income within the second quarter of the 12 months, rising its shares after having overtaken Samsung within the first quarter.
The report added that the worldwide HBM market grew 178% 12 months over 12 months within the second quarter, and SK Hynix dominated the house with a 64% share.
Samsung will report earnings on Thursday.
