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SK Hynix Q4 Profit Soars on AI Chip Demand; Raises Dividend
Source: SK hynix

SK Hynix Q4 Profit Soars on AI Chip Demand; Raises Dividend

SK Hynix reports record Q4 earnings with KRW 8.08T operating profit driven by AI memory demand; increases dividend 25%

Philip Lee profile image
by Philip Lee

Seoul, South Korea- SK hynix Inc reported record quarterly earnings as robust artificial intelligence memory chip demand drove significant growth in revenue and profitability.

The South Korean memory chip manufacturer posted revenue of KRW 19.77 trillion (US$13.76 billion) in the fourth quarter, up 12% from the previous quarter and 75% higher from a year earlier.

Operating profit surged to KRW 8.08 trillion (US$5.63 billion), representing a 15% quarter-on-quarter increase and an operating margin of 41%. 

Net profit rose 39% to KRW 8.01 trillion (US$5.57 billion).

For 2024, SK hynix achieved record revenue of KRW 66.19 trillion (US$46.08 billion) and an operating profit of KRW 23.47 trillion (US$16.34 billion), with an operating margin of 35%. 

Net profit reached KRW 19.80 trillion (US$13.78 billion).

The company reported that high bandwidth memory (HBM) contributed over 40% of total DRAM revenue in the fourth quarter. 

The company's cash equivalent increased by KRW 5.2 trillion (US$3.62 billion) to KRW 14.2 trillion (US$9.89 billion), while debt decreased by KRW 6.8 trillion (US$4.73 billion) to KRW 22.7 trillion (US$15.80 billion) compared to the end of 2023.

SK hynix announced a 25% increase in annual fixed dividend to KRW 1,500 (US$1.04) per share from KRW 1,200 (US$0.84), bringing the total annual cash dividend to KRW 1 trillion (US$696.2 million).

The company forecasts that the demand for HBM and high-density server DRAM will continue growing as global technology companies increase their AI server investments. 

SK hynix expects its HBM revenue to grow over 100% year-on-year in 2025.

For the first quarter of 2025, the company projects DRAM shipments to decrease by a a low teens percentage and NAND shipments to decline by a a high teens percentage quarter-on-quarter. 

It cites weak seasonality in IT devices and relatively high memory inventory in some end markets.

Philip Lee profile image
by Philip Lee

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