Nvidia supplier SK Hynix posts record second-quarter profit and revenue on strong AI memory demand

South Korea’s SK Hynix on Thursday posted report working benefit and earnings in the second one quarter, pushed via sustained call for for its tall bandwidth reminiscence impaired in synthetic logic era. 

Listed below are SK Hynix’s second-quarter effects when put next with LSEG SmartEstimates, that are weighted towards forecasts from analysts who’re extra constantly correct: 

• Income: 22.23 trillion received ($16.17 billion) vs. 20.56 trillion received
• Working benefit: 9.21 trillion received vs. 9 trillion received

Income rose over 35% within the June quarter when put next with the similar length a date previous, time working benefit rose just about 69%, date on date.

On a quarter-on-quarter foundation, earnings rose 26%, time working benefit jumped 24%.

SK Hynix makes reminiscence chips which can be impaired to bundle information and may also be present in the entirety from servers to client gadgets akin to smartphones and computers.

The corporate stated in a commentary that it loved robust call for and favorable pricing situations within the first part of the date. It added that there was once a low chance of clever call for corrections for the extra of 2025, because of strong buyer stock ranges and anticipated call for from unused product launches.

SK Hynix’s management in dynamic random get entry to reminiscence — one of those semiconductor reminiscence frequently present in PCs, workstations and servers — has challenged rival Samsung Electronics’ place within the reminiscence area.

The corporate’s stocks have been up 1.3%, having risen over 3% in early business.

A lot of SK Hynix’s fresh good fortune on this section may also be credited to its industry in tall bandwidth reminiscence, or HBM — one of those DRAM impaired for synthetic logic computing. SK Hynix has established itself as the worldwide chief in HBM, supplying purchasers akin to U.S. AI darling Nvidia. 

“Demand for AI memory continued to grow, driven by aggressive AI investments from big tech companies,” Music Hyun-jong, president and head of the Company Middle at SK Hynix, stated within the profits name. 

The corporate expects this funding to proceed to pressure wholesome call for enlargement within the AI server marketplace, regardless of macro hesitation, with call for for general-purpose servers additionally anticipated to develop. 

Additional building of AI brokers with enhanced reasoning fashions will necessitate extra high-performance reminiscence, in keeping with Music, who added that the proliferation of AI within the PC and smartphone marketplace will spice up call for additional. 

“Additionally, ongoing investments by governments and corporations for solving AI are likely to become a new long term driver of AI memory demand,” Music stated.

The corporate expects to double HBM gross sales for the total date in comparison to 2024 — they contributed 77% to its second-quarter earnings.

As SK Hynix’s HBM gross sales get up, it is usually making plans to finish arrangements for cluster manufacturing of its next-generation reminiscence, HBM4, earlier than the top of this date.

SK Hynix stated it anticipated its capital expenditure in 2025 to extend, with “proactive investment” had to safeguard aid for its HBM shoppers in 2026.

Within the first quarter, SK Hynix’s good fortune in HBM had viewable the corporate overtake rival Samsung within the world DRAM marketplace for the primary while, in keeping with Counterpoint Analysis.

A document from the analysis company previous this era discovered that SK Hynix had matched Samsung’s blended DRAM and NAND revenues in the second one quarter, with each now vying for the manage place within the world reminiscence marketplace. NAND is one of those flash reminiscence this is impaired to bundle information in numerous gadgets. 

Samsung and U.S.-based reminiscence maker Micron Generation are each looking for to catch as much as SK Hynix within the HBM area.

Micron is deploying a few of its complex merchandise for usefulness with Nvidia and alternative shoppers akin to AMD. In the meantime, Samsung has reportedly been running to get the actual model of its HBM chips qualified via Nvidia. On the other hand, analysts be expecting SK Hynix’s dominance to persist within the temporary.

“As of now, I believe SK Hynix still holds its leadership in the HBM race … despite Samsung’s and Micron’s catch‑up efforts,” stated Ray Wang, analysis director of semiconductors, provide chain and rising era at The Futurum Crew. 

“I expect this edge to persist through the rest of 2025 and extend into 2026,” he added.

At the profits name, an SK Hynix consultant had additionally famous that hesitation round U.S. tariff insurance policies ended in larger buying call for within the first part of the date. Gross sales in the second one part might be impacted relying on how occasion tariff insurance policies evolve, the corporate stated. 

Amid tariff hesitation, South Korea introduced a 33 trillion received ($24.1 billion) aid bundle for the rustic’s semiconductor trade in April, up a couple of quarter from a bundle dedicated latter date.