SK hynix posted record earnings for the third quarter, fueled by booming demand for high-bandwidth memory (HBM) and server-grade DRAM used in artificial intelligence (AI) applications.
Operating profit surged 61.9% year over year to $8.3 billion, while revenue climbed 39% to $17.8 billion, the company said Tuesday. Net income more than doubled to $9.2 billion, surpassing the previous quarter’s record and marking the first time SK hynix’s operating profit has topped $7 billion.
The company said sales of HBM3E and DDR5 chips for AI servers drove the results, as shipments of high-capacity 128GB DRAM modules more than doubled from the prior quarter. Enterprise solid-state drives (SSDs) optimized for AI workloads also contributed to growth.
SK hynix expects demand for high-performance memory to continue expanding as AI systems shift from training to inference tasks, requiring faster and more efficient chips. It plans to begin shipments of its HBM4 chips in the fourth quarter after completing development and meeting customer performance requirements.
The company ended the quarter with $20.3 billion in cash and $17.6 billion in total debt, turning net cash positive for the first time in years. SK hynix said it will increase capital spending next year to expand production capacity at its new M15X fab and accelerate adoption of advanced process technology.
“AI innovation is reshaping the memory industry,” said Woo-Hyun Kim, SK hynix’s chief financial officer. “We will continue to strengthen our leadership in AI memory through differentiated technology and close partnerships with customers like Nvidia.”
