A customer seems to be at a mannequin of SK hynix’s high-bandwidth reminiscence (HBM) know-how throughout the 2025 World IT Present in Seoul on April 24, 2025.
Jung Yeon-je | Afp | Getty Photos
South Korea’s SK Hynix on Wednesday posted file quarterly income and revenue, boosted by a robust demand for its excessive bandwidth reminiscence utilized in generative AI chipsets.
The corporate is trying to increase manufacturing capability in 2026, with its deliberate provide of reminiscence merchandise for 2026 already offered out.
Listed here are SK Hynix’s third-quarter outcomes versus LSEG SmartEstimates, that are weighted towards forecasts from analysts who’re extra constantly correct:
- Income: 24.45 trillion received ($17.13 billion) vs. 24.73 trillion received
- Working revenue: 11.38 trillion received vs. 11.39 trillion received
Income rose about 39% within the September quarter in contrast with the identical interval a 12 months earlier, whereas working revenue surged 62%, 12 months on 12 months.
On a quarter-on-quarter foundation, income was up 10%, whereas working revenue grew 24%. In its earnings launch, the corporate famous that the quarterly working revenue had surpassed 10 trillion received for the primary time.
Following the report, SK Hynix shares in South Korea popped over 5%, boosting its inventory rally previous 210% this 12 months.
SK Hynix makes reminiscence chips which might be used to retailer information and might be present in every part from servers to shopper units corresponding to smartphones and laptops.
The corporate has benefited from a growth in synthetic intelligence as a key provider of high-bandwidth reminiscence or HBM chips used to energy AI information heart servers.
“As demand throughout the reminiscence phase has soared as a result of clients’ increasing investments in AI infrastructure, SK Hynix as soon as once more surpassed the record-high efficiency of the earlier quarter as a result of elevated gross sales of excessive value-added merchandise,” SK Hynix stated in a press release.
HBM falls into the broader class of dynamic random entry reminiscence, or DRAM — a sort of semiconductor reminiscence used to retailer information and program code that may be present in PCs, workstations and servers.
The corporate stated it should start supplying its next-generation HBM4 chips within the present quarter, following negotiations with unspecified clients. The chips characterize the sixth era of HBM know-how.
HBM chief
SK Hynix has set itself aside within the DRAM market by getting an early lead in HBM and establishing itself as the principle provider to the world’s main AI chip designer, Nvidia.
Nevertheless, its important rivals, U.S.-based Micron and South Korean-based tech large Samsung, have been working to catch up within the area.
Micron has already provided Nvidia with a few of its HBM know-how, whereas Samsung lately handed Nvidia’s qualification checks for a complicated HBM product, in response to a neighborhood report final month.
“With the innovation of AI know-how, the reminiscence market has shifted to a brand new paradigm and demand has begun to unfold to all product areas,” SK Hynix Chief Monetary Officer Kim Woohyun stated within the earnings launch.
“We’ll proceed to strengthen our AI reminiscence management by responding to buyer demand via market-leading merchandise and differentiated technological capabilities,” he added.
The HBM market is predicted to proceed to growth over the subsequent few years to round $43 billion by 2027, giving sturdy earnings leverage to reminiscence producers corresponding to SK Hynix, MS Hwang, analysis director at Counterpoint Analysis, instructed CNBC.
“[F]or SK Hynix to proceed producing income, it will be necessary for the corporate to take care of and improve its aggressive edge,” he added.
A report from Counterpoint Analysis earlier this month confirmed that SK Hynix held a number one 38% share of the DRAM market by income within the second quarter of the 12 months, growing its shares after having overtaken Samsung within the first quarter.
The report added that the worldwide HBM market grew 178% 12 months over 12 months within the second quarter, and SK Hynix dominated the area with a 64% share. Samsung will report its earnings on Thursday.
Ray Wang, lead semiconductor analyst at Futurum Group, instructed CNBC that he expects SK Hynix to take care of its dominant management within the HBM market via subsequent 12 months, due to its technological edge.
“The corporate is more likely to maintain round 60% world HBM market share, underpinned by its place as the first provider to key clients corresponding to Nvidia, Google and different main clients,” he added.
