Experts predict continued profit growth for SK Hynix, driven by rising demand and higher average selling prices for high-performance memory chips.

The company's revenue surged by 94% to 17.6 trillion won, slightly under the anticipated 18.2 trillion won, reflecting robust market performance.

Sales of HBM increased over 70% from the previous quarter and more than 330% compared to the same quarter last year, underscoring the growing significance of AI technologies.

SK Hynix, a leading memory chipmaker, achieved a record quarterly profit for the third quarter of 2023, largely fueled by soaring demand for high bandwidth memory (HBM) utilized in generative AI applications.

Looking ahead, the company anticipates that demand for HBM chips, especially for AI applications, will continue to surpass supply in 2024, despite concerns about potential market oversupply.

Analysts have expressed optimism about SK Hynix's future, with firms like Goldman Sachs and Citigroup raising their stock price targets due to expected growth driven by AI demand.

The company's operating profit exceeded the average analyst forecast of 6.8 trillion won, showcasing its strong performance relative to rivals like Samsung Electronics and Micron Technology.

The head of DRAM marketing at SK Hynix emphasized that it is premature to discuss a slowdown in demand for AI chips, citing the increasing need for computing power.

CEO Kwak Noh-jung announced that mass production of the next-generation HBM3E AI chips is on track to begin by the end of the year, further solidifying the company's position in the market.

In addition to its strong performance, SK Hynix is investing significantly in its future, with plans for a $3.87 billion advanced packaging plant and research center for AI products in Indiana.

The company expects mid- to high teens growth in demand for DRAM and NAND flash memory chips by 2025, reflecting its strategic focus on high-value technologies.

Despite these impressive earnings, SK Hynix remains wary of pricing pressures stemming from increased supply in the legacy product market, particularly from Chinese competitors.