SK Hynix posts record US$7.9 billion profit on AI-driven chip boom
The strong performance follows the company’s announcement this month that it signed partnerships with OpenAI and Broadcom
South Korean chip giant SK Hynix reported record profit in the third quarter on Wednesday, boosted by strong demand for artificial intelligence.
The world’s second-largest memory chipmaker dominates the market for high-bandwidth memory (HBM) semiconductors and is a key supplier for US titan Nvidia.
The company’s operating profit rose 61.9 per cent year-on-year to a record 11.38 trillion won (US$7.9 billion), with an operating margin of 47 per cent.
“The company achieved its highest-ever quarterly performance, driven by the full-scale rise in prices of DRAM and NAND, as well as the increasing shipments of high-performance products for AI servers,” it said in its earnings statement, referring to memory processing chips and chips used for data storage.
It is the second quarter in a row that SK Hynix has posted a record operating profit, which had risen almost 70 per cent to then-highs of 9.2 trillion won in April-June.
The strong performance follows the company’s announcement this month that it signed partnerships with AI giants including OpenAI and Broadcom to supply advanced memory chips.