SK hynix Q2 profit surges 557% on AI chip demand, falls short of estimates
Key Takeaways
- •SK hynix reported quarterly operating profit of 60.5 trillion won for April-June, a 557% increase from a year earlier.
- •The company reached a record high in quarterly operating profit.
- •Results were supported by strong demand for advanced memory chips tied to AI data center spending.
- •The figure missed the 64 trillion won LSEG SmartEstimate forecast.
- •SK hynix’s focus on high-end AI memory chips left it less exposed to gains in conventional memory chip prices.
South Korean chipmaker SK hynix reported a 557 percent increase in quarterly operating profit to a record high on Wednesday, driven by strong demand for advanced memory chips as major technology companies stepped up spending on AI data centers.
The Nvidia supplier posted operating profit of 60.5 trillion won ($41.62 billion) for the April-June period, up from 9.2 trillion won a year earlier.
That result compared with a 64 trillion won forecast from LSEG SmartEstimate, a measure weighted toward analysts who have historically been more accurate.
SK hynix missed analysts' forecasts because its greater exposure to high-end memory chips used in AI data centers, compared with rivals, meant it benefited less from the stronger price rally in conventional memory chips. The result highlights how the AI server buildout is affecting different memory makers unevenly, with demand concentrated in advanced products tied to Nvidia and other AI infrastructure spending rather than in the broader memory market.
(Reuters)