SK Hynix Surges in AI Chip Demand, Reports Record Profit Amid Market Challenges
January 23, 2025CFO Kim Woo-hyun expressed concerns about uncertainties in the memory chip market, highlighting trade protectionism and geopolitical risks affecting inventory adjustments by PC and smartphone companies.
In the fourth quarter of 2024, SK Hynix began supplying its advanced 12-layer HBM3E chips, currently the most advanced model in mass production.
The company optimized its balance sheet in 2024, increasing cash equivalents by 5.2 trillion won and reducing debt by 6.8 trillion won.
The company's performance has outpaced competitors like Samsung and Micron Technology, primarily due to its early investments in high-bandwidth memory (HBM) chip development.
SK Hynix's operating profit exceeded the average forecast of 8 trillion won, marking a notable increase from 346 billion won a year earlier.
Despite strong profits, concerns about declining demand for commodity memory chips led to a 3% drop in SK Hynix's shares on January 23, 2025.
Transitioning from a loss in 2023, SK Hynix achieved a net profit of 19.79 trillion won in 2024, demonstrating a strong recovery.
SK Hynix is on track to supply HBM4 chips to customers in the second half of 2025, reaffirming its previous timeline.
On January 18, 2025, SK Hynix Inc reported a significant increase in fourth-quarter profit, driven by heightened demand for high-end memory chips from the artificial intelligence sector.
The company forecasts a 10% to 20% decline in shipments of DRAM and NAND flash products in the first quarter of 2025, citing weaker demand from smartphones and computers.
Looking ahead, SK Hynix anticipates a reduction in inventory levels for conventional memory chips but expects a rebound in sales of AI-equipped devices in the latter half of 2025.
The company has benefited from a surge in demand for artificial intelligence servers, positioning itself as a key supplier for Nvidia.
Summary based on 10 sources
Get a daily email with more AI stories
Sources
Yahoo Finance • Jan 22, 2025
Nvidia Partner SK Hynix Posts Record Profit During AI BoomYahoo Finance • Jan 22, 2025
SK Hynix posts record quarterly profit surpassing Samsung on AI boomYahoo Finance • Jan 23, 2025
SK Hynix profit surpasses Samsung, but shares dip on lower memory chip demand