SK Hynix Inc recorded a substantial improvement in first-quarter results, reporting operating profit that rose 405% year-on-year to 37.61 trillion won ($25.42 billion) for the three months ended March 31, the company said in a statement. Revenue for the quarter climbed nearly 200% to 52.58 trillion won.
The South Korean memory chip maker attributed the surge to outsized demand tied to artificial intelligence, saying that as more global firms expand the infrastructure needed to power AI applications they have increased purchases of memory products. The company noted that it remains among the world's largest producers of memory chips.
Memory prices have climbed sharply across the past two quarters as elevated AI demand has tightened available supply, according to the company's account. High-bandwidth memory (HBM) was highlighted as a principal contributor to this trend. SK Hynix and other memory makers have indicated a shift in production mix toward more HBM output to address AI-fueled requirements.
SK Hynix also reiterated its role as a key supplier to NVIDIA Corporation, and said on Thursday that it expects memory prices to continue rising in coming quarters. The company linked ongoing price momentum to continued demand growth from AI infrastructure build-outs and constrained supply conditions that have prevailed in the recent period.
Investors and market participants watching the semiconductor and AI infrastructure sectors will likely focus on the evolution of HBM production and pricing, given its outsized influence on revenue and profitability at major memory suppliers. SK Hynix's strong quarter reflects how AI-driven purchasing behavior can affect manufacturers' top- and bottom-line outcomes when supply is tight.
Financial highlights
- Operating profit: 37.61 trillion won, up 405% year-on-year.
- Revenue: 52.58 trillion won, up nearly 200% year-on-year.
Market drivers
- Rising demand for memory from AI infrastructure expansion.
- Price increases across memory chips over the last two quarters, with high-bandwidth memory a key driver.
- Industry shift toward producing more HBM to meet AI-related demand.
The company did not provide additional specifics beyond these figures and statements. Where details were limited in the company's release, this report reflects only the information that SK Hynix disclosed about the quarter, pricing trends, product mix shifts, and its supplier relationship with NVIDIA.