SK Hynix Reports Record Profits on AI Memory Demand
HBM Chips Drive SK Hynix to Historic Quarter
SK Hynix has posted its highest-ever quarterly operating profit of 6.47 trillion won ($4.7 billion), more than doubling the previous quarter's result. The South Korean memory chipmaker attributed the record performance to explosive demand for high-bandwidth memory (HBM) chips used in AI training and inference hardware.
Revenue reached 17.6 trillion won, up 94% year-over-year. HBM products, which command premium pricing, accounted for an estimated 30% of total DRAM revenue, according to analyst estimates from KB Securities.
Nvidia Partnership Fuels Growth
SK Hynix is the primary supplier of HBM3E memory for Nvidia's H200 and B100 GPUs. The company began mass production of HBM3E in March 2025, ahead of rival Samsung, and has secured supply agreements through 2026.
CEO Kwak Noh-jung told investors that "demand for HBM continues to exceed our production capacity." He said the company plans to invest 8 trillion won in 2025 to expand HBM production at its Icheon and Cheongju facilities.
Conventional Memory Also Recovers
Beyond HBM, the broader DRAM and NAND markets have recovered from the severe downturn of 2023. Average DRAM selling prices rose 18% quarter-over-quarter, driven by restocking from server manufacturers and improved demand from smartphone makers ahead of the holiday season.
TrendForce analyst Avril Wu said the memory market "has entered a super-cycle driven by AI, with HBM creating a pricing umbrella that supports the entire DRAM market." She forecast that HBM revenue industry-wide would exceed $25 billion in 2025.
Competition Intensifies
Samsung Electronics is ramping its own HBM3E production and is expected to begin qualification testing with Nvidia by year-end. Micron Technology has also started HBM3E shipments, though in smaller volumes. SK Hynix currently holds approximately 53% of the HBM market.
Analysts expect the competitive landscape to shift in 2026 when HBM4 enters production. SK Hynix has said its HBM4 development is on track, with sample shipments planned for the first half of 2026.
