SK Hynix Shatters Profit Records Amid AI-Driven Demand Surge

South Korean chipmaker SK Hynix reported a significant increase in quarterly operating profit, hitting a record high due to robust demand for memory chips in AI data centres. However, it missed forecasts due to limited gains from high-end chips. Net profit also rose significantly due to non-operating gains.

South Korean chip manufacturer SK Hynix has announced a staggering more than sixfold increase in quarterly operating profits, achieving record highs, buoyed by increased demand for advanced memory chips as tech giants intensify investments in AI data centres.

Despite reporting operating profits of 60.5 trillion won ($41.62 billion) for the April-June quarter, which marks a significant jump from 9.2 trillion won the previous year, the company fell short of the 64 trillion won prediction by LSEG SmartEstimate. The evaluation is primarily based on consistently accurate analysts. According to a statement from SK Hynix, the surge was propelled by continuous growth in AI infrastructure investments, resulting in price hikes for high-performance AI server products, propelling the company beyond its previous records.

However, SK Hynix's revenue slightly disappointed market forecasts as its predominant involvement with high-end memory chips for AI centres resulted in modest benefits from the rise in conventional chip prices. DRAM contract prices surged approximately 52% in Q2, while some NAND prices doubled, according to TrendForce data.