SK Hynix has outperformed its rivals, Samsung and Micron Technology, in recent quarters, thanks to early investments in high-bandwidth memory (HBM) chip development.

On January 18, 2025, SK Hynix Inc reported a significant increase in fourth-quarter profit, largely driven by heightened demand for high-end memory chips from the artificial intelligence sector.

Looking ahead, SK Hynix expects customers to reduce inventory of conventional memory chips for PCs and smartphones, while anticipating a rebound in sales of AI-equipped devices in the latter half of 2025.

The company transitioned from a loss in 2023 to a net profit of 19.79 trillion won ($13.84 billion) in 2024, showcasing a strong recovery.

Analyst Lee Min-hee revised his forecast for SK Hynix's first-quarter operating profit down from 6 trillion won to approximately 5.5 trillion won, reflecting cautious market sentiment.

In the fourth quarter of 2024, SK Hynix began supplying its advanced 12-layer HBM3E chips, currently the most advanced model in mass production.

In January 2025, SK Hynix's stock rose nearly 30%, influenced by its role as a supplier for Nvidia's AI accelerators, essential for training generative AI services like ChatGPT.

Despite the positive outlook, the company anticipates a decline in shipments of DRAM and NAND flash memory chips by 10% to 20% in the first quarter of 2025 compared to the previous quarter.

The company's operating profit surpassed the 8 trillion won average forecast by LSEG SmartEstimate, marking a notable rise from 346 billion won a year earlier.

The chipmaker has notably benefited from a surge in demand for artificial intelligence servers and serves as a key supplier for Nvidia.

CFO Kim Woo-hyun expressed concerns about uncertainties in the memory chip market, highlighting trade protectionism and geopolitical risks affecting inventory adjustments for PC and smartphone companies.

As of January 23, 2025, SK Hynix stock is trading at 218,500 won ($151.97), down 3.10% for the day, but has appreciated by 55.18% over the past year.