SK Hynix Inc. delivered its strongest quarterly performance ever as artificial intelligence computing fueled demand for its high-bandwidth memory chips, pushing revenue to 17.6 trillion won ($12.9 billion) in the third quarter.
Operating profit hit 7 trillion won, marking a dramatic turnaround from a 1.8 trillion won loss a year earlier. The results exceeded analyst expectations and the previous record set during the 2018 semiconductor boom.
The South Korean chipmaker’s HBM products, crucial components for AI accelerators, saw sales soar 330% from last year. These premium chips now make up 30% of the company’s DRAM revenue, with projections reaching 40% by year-end as the company ramps up production of its new 12-layer HBM3E variant.
While AI-related sales drove the quarter’s success, SK Hynix expects a broader recovery in 2024. The company cited improving demand in PC and mobile markets, traditionally its largest segments that have lagged behind the AI boom.
Average selling prices for both DRAM and NAND flash memory rose more than 10% from the previous quarter, reflecting the shift toward higher-margin products. The company maintained a cautious outlook on traditional memory markets while emphasizing its focus on AI-specific chips.
