SK hynix Soars on AI Chip Demand: Record Q2 Revenue

Seoul, South Korea - South Korean chipmaker SK hynix (000660. KS) reported record quarterly revenue and its highest operating profit in six years on Thursday, driven by surging demand for artificial intelligence memory chips.

The world's second-largest memory chip maker posted revenue of KRW 16.42 trillion ($11.87 billion) in the second quarter, up 125% year-on-year. 

Operating profit soared to KRW 5.47 trillion ($3.95 billion), marking a dramatic turnaround from a 2.88 trillion won loss a year earlier.

Key figures for Q2 2024:

• Revenue: KRW 16.42 trillion ($11.87 billion), +125% YoY
• Operating profit: KRW 5.47 trillion ($3.95 billion), vs KRW 2.88 trillion loss YoY
• Net profit: KRW 4.12 trillion ($2.98 billion), vs KRW 2.99 trillion loss YoY
• Operating margin: 33%, up from -39% YoY

"We were able to reduce borrowings by KRW 4.3 trillion compared to the first quarter while making essential investments," said CFO Kim Woohyun. "The company will further solidify its position as a leader in AI memory products."

SK Hynix's results starkly contrast with those of the broader memory chip market, which has only recently begun to recover from a prolonged downturn. 

The company's NAND flash business returned to profitability for the second consecutive quarter, but growth rates pale compared to its AI-centric DRAM segment.

SK hynix plans to mass-produce its next-generation 12-layer HBM3E chips in the third quarter. 

The chipmaker expects AI server memory demand to continue rising in the second half, alongside a gradual recovery in conventional applications as new AI-enabled devices enter the market.

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