SK hynix reported its second-highest quarterly earnings as AI-related demand for memory chips continues to fuel growth despite typical first-quarter slowdown. The Korean chipmaker announced revenues of 17.64 trillion won ($13.1 billion) and operating profit of 7.44 trillion won ($5.5 billion) for the first quarter of 2025.
The company achieved a 42% operating margin, up one percentage point from the previous quarter, marking eight straight quarters of margin improvement. Net profit reached 8.11 trillion won ($6 billion), showing slight growth over the previous quarter despite an 11% revenue decline.
The strong performance comes as SK hynix has taken the overall DRAM market lead from Samsung for the first time, establishing dominance in the high-bandwidth memory (HBM) sector with approximately 70% market share. The company attributed results to unexpectedly robust AI system development and inventory accumulation demand.
Cash reserves grew modestly to 14.3 trillion won ($10.6 billion) from 14.1 trillion won at the end of 2024, improving debt ratios to 29% from 31% previously. While focused on expanding sales of high-value products like 12-layer HBM3E and DDR5, the company’s caution about potential market corrections raises questions about sustainability of current growth rates.
Looking ahead, SK hynix expects 12-layer HBM3E chips to account for over 50% of total HBM3E revenues in the second quarter, signaling continued strength in its highest-margin product segment.
