SK Hynix Navigates AI-Driven Chip Boom with Record Profits

SK Hynix has sold out its entire chip production for next year amid an AI-fueled chip super cycle, recording a 62% increase in quarterly profits. The firm plans substantial investments to meet rising demand, expecting a growth in DRAM and HBM product shipments and battling limited supply growth.

In a striking display of foresight, South Korea's SK Hynix has confirmed the complete sale of its chip production for the upcoming year, buoyed by the ongoing AI surge. Announcing a record quarterly profit, the company looks to enhance investments considerably to keep pace with the anticipated extended chip "super cycle."

Shares of SK Hynix surged nearly 6% on this record-breaking profit news, outperforming the KOSPI's 1.5% increase. The announcement comes as more customers fight for chip supplies amid an apparent shortage, leading to advance orders for next year and demands for long-term contracts, according to the company.

The demand-supply gap is further exacerbated by the shift towards high-bandwidth memory (HBM), impacting traditional memory output. SK Hynix's head of DRAM marketing, Kim Kyu-hyun, stated that this structural misalignment, as supply trails behind demand, would support the sustained memory super cycle.