SK Hynix doubled its revenue and increased profits fivefold thanks to the growth of the artificial intelligence market

SK Hynix: Record Quarter in the AI Growth Era

Memory chips are at the center of artificial intelligence infrastructure, and suppliers of this segment are reaping substantial profits. South Korean company SK Hynix confirms this trend: in the last quarter its revenue almost tripled compared to the previous year, and operating margin increased fivefold.

Metric Value Year‑over‑Year Comparison
Revenue $35.55 million +≈ 200 %
Operating profit $25.4 million +≈ 100 %
Operating margin 72 % record

Despite impressive numbers, first‑quarter figures were slightly below analysts’ expectations. This is not surprising: for the memory market, Q1 is usually not considered a peak revenue period. However, the rapid growth in AI demand has shattered that stereotype.

What Company Representatives Say
- Customers: “Memory is more important than ever.” They are willing to pay for sufficient volume rather than price.

- Market Conditions:
- Samsung again dominated in dollar terms in the DRAM market (fourth quarter of last year).
- In the HBM segment, SK Hynix maintains leadership with a 57 % share.

- Forecasts: memory growth has exceeded 30 % for two consecutive quarters. Management estimates that the HBM shortage will be felt at least until 2030, even with production expansion plans.

- Financial Outlook:
- With moderate price increases in the second half of the year, SK Hynix’s profit should continue to grow throughout the year.
- The company’s capital expenditures this year are expected to rise by 45 %.

Pricing
- Average DRAM selling price rose by 60.8 % in Q1.
- NAND price increased by 55.3 %.

These dynamic pricing changes are a key factor explaining the explosive growth of memory manufacturers’ financial metrics.