SK Hynix Reports Record Q1 2025 Profits on Surging AI Chip Demand

South Korea's SK Hynix, the world’s second-largest memory chip maker, announced record-breaking operating profits in the first quarter of 2025, driven by soaring demand for high-bandwidth memory (HBM) chips used in artificial intelligence applications

Strong Financial Results Beat Market Expectations
The company posted operating profits of 7.44 trillion won (approximately $5.2 billion), marking a 158% increase year-on-year and surpassing analyst forecasts of 6.6 trillion won. Revenue rose by 42% to 17.6 trillion won, fueled by growing demand for HBM chips and customer stockpiling in anticipation of potential U.S. tariffs on semiconductors

SK Hynix is the primary supplier of HBM chips to Nvidia, holding a dominant 70% market share in this sector—outpacing rival Samsung, which continues to face supply chain constraints in meeting rising demand.

Outlook and Challenges Ahead

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Despite its strong performance, SK Hynix warned of potential demand fluctuations in the second half of the year due to ongoing geopolitical tensions and trade restrictions, including U.S. tariffs and export controls on shipments to China. However, the company reassured investors that the impact on its AI chip business would likely be limited, as most of its HBM exports are destined for markets outside the United States

Looking ahead, SK Hynix expects robust demand for HBM chips to continue, driven by increased investment in data centers and the integration of AI capabilities into smartphones—both of which are boosting sales of high-performance DRAM.

Despite the strong quarterly performance, SK Hynix shares dipped 1.2%, influenced by foreign investor sell-offs and broader concerns over a global economic slowdown

These results underscore SK Hynix's resilience in the face of global headwinds, as it remains focused on innovation and maintaining its leadership in the AI chip market