SK Hynix is poised to report over 7 trillion won (US$4.8 billion) in first-quarter operating profit, surpassing market expectations and likely outperforming semiconductor rival Samsung Electronics for the second consecutive quarter. The chipmaker first overtook Samsung in quarterly profit during Q4 2024, a historic milestone for the company largely attributed to its dominance in AI memory solutions.
The memory giant’s impressive performance stems from its commanding position in high-bandwidth memory (HBM) production, crucial components for artificial intelligence processors. Industry analysts note SK Hynix has captured approximately 70% of the global HBM market, a segment experiencing “unfettered demand” as AI applications proliferate across industries. The company has maintained this advantage through close partnerships with AI semiconductor leader NVIDIA.
SK Hynix has already sold out its entire HBM chip supply for 2025 and will begin shipping advanced 16-layer HBM3E chips in coming months. Looking ahead, the firm plans to aggressively expand production capacity by 40% for its fifth-generation DRAM used in cutting-edge HBM3E memory. This strategic investment comes amid increasing competitive pressure, particularly from Samsung Electronics, which aims to improve its position in the lucrative AI memory market.
If first-quarter results meet expectations, SK Hynix’s sales will have increased approximately 40% year-over-year, with operating profit jumping over 140%. Despite these impressive numbers, market observers have noted uncertainty ahead, with the company warning of potential weaker demand for conventional memory chips used in consumer electronics. However, the continued AI infrastructure boom appears likely to sustain SK Hynix’s growth trajectory through 2025.
