SK Hynix Surges in AI Chip Demand, Reports Record Profit Amid Market Challenges

January 23, 2025
SK Hynix Surges in AI Chip Demand, Reports Record Profit Amid Market Challenges
  • CFO 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


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