SK Hynix Posts Record Earnings on Continued AI-Chip Demand
By Kwanwoo Jun
SK Hynix, the main supplier of high-bandwidth-memory products to Nvidia, posted record quarterly earnings as robust artificial-intelligence investments by big global tech companies continued to fuel demand for its advanced AI chips.
The South Korean memory-chip maker attributed the stellar third-quarter performance to brisk shipments of higher-end HBM3E products as well as higher prices for DRAM chips used in data servers for AI training and mobile devices. Analysts have said they expect the AI boom, which requires high-performance chips, to continue into next year.
Surging demand for enterprise solid-state drives also helped improve earnings at the company's NAND chip business.
Net profit more than doubled from a year earlier to a record 12.598 trillion won, equivalent to $8.80 billion, for the three months ended September, SK Hynix said Wednesday. That topped a previous high set in the first quarter of this year and beat market views. Analysts had expected a bottom line of 8.491 trillion won, according to a FactSet consensus estimate.
It also posted record revenue and operating profit for the quarter. The top line climbed 39%, to 24.449 trillion won. Operating profit exceeded 10 trillion won for the first time, jumping 62%, to 11.383 trillion won.
Shares in SK Hynix closed 2.6% lower on Tuesday ahead of the results on profit taking after recent gains. Still, the stock has nearly tripled this year, driven by investor enthusiasm about AI.
The company was ahead of rival HBM manufacturers in supplying 12-layer HBM3E products, which currently dominate the premium segment of the AI-chip market, and is poised to repeat that feat with the next-generation memory product.
SK Hynix said Wednesday that it completed discussions with key customers about next year's HMB supply. It said HBM4 shipments would start in the fourth quarter of 2025 ahead of a full-scale sales expansion in 2026.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
October 28, 2025 19:25 ET (23:25 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
2 Undervalued Stocks to Buy With Long-Term Growth Ahead
5 Stocks to Buy Trading at Big Discounts
The Market May Be Too Pessimistic About This 4-Star Dividend Stock
4 Stocks to Buy for the Long-Term While They’re Still Undervalued
United States