SK Hynix Inc. delivered record-breaking quarterly results, with operating profit soaring 68% to 9.2 trillion won ($6.7 billion) as global technology companies ramped up artificial intelligence investments.
The South Korean memory chipmaker reported revenue of 22.2 trillion won ($16.2 billion) for the second quarter, marking a 35% jump from the same period last year. Both revenue and operating profit reached all-time highs, surpassing the company’s previous record quarter in late 2024.
The stellar performance reflects SK Hynix’s dominance in high-bandwidth memory chips essential for AI computing. The company has established itself as the global leader in HBM, supplying clients such as U.S. AI darling Nvidia. HBM chips provided 77 percent of its second quarter revenue.
The company expanded sales of 12-high HBM3E in the DRAM space, while registering growth in sales of NAND for all applications. SK Hynix’s operating margin reached 41%, demonstrating the profitability of its AI-focused strategy compared to traditional memory products.
The financial windfall strengthened SK Hynix’s balance sheet considerably. Cash and equivalents climbed to 17 trillion won by quarter-end, up 2.7 trillion won from the previous three months. Net debt dropped by 4.1 trillion won, leaving the company with a debt ratio of 25% and net debt ratio of just 6%.
SK Hynix’s leadership in dynamic random access memory has challenged rival Samsung Electronics’ position in the memory space. According to Counterpoint Research, SK Hynix is now neck and neck with Samsung for combined DRAM and NAND revenues in the second quarter at the $15.5 billion mark.
Looking ahead, SK Hynix plans to double HBM production compared to last year and expects to complete preparations for next-generation HBM4 chips before year-end. The company will also launch server-focused LPDDR modules and expand its GDDR7 products to 24Gb capacity for AI graphics processors.
Song Hyun Jong, President and Head of Corporate Center, said SK Hynix will carry out preemptive investments this year for smooth provision of major products with visible demand for next year including HBM.
