Nvidia-supplier SK Hynix third-quarter profit jumps 62% to a record high

South Korea’s SK Hynix It posted record quarterly revenue and profit on Wednesday, fueled by strong demand for high-bandwidth memory used in productive AI chipsets.

SK Hynix’s third quarter results versus LSEG SmartEstimates are weighted by analysts’ estimates, which are more consistently accurate:

• Revenues: 24.45 trillion won ($17.13 billion) and 24.73 trillion won
• Operating profit: 11.38 trillion won etc. 11.39 trillion won

In the September quarter, revenue rose nearly 39% year-on-year, while operating profit rose 62% year-on-year.

Quarter-over-quarter, revenue increased 10% while operating profit increased 24%.

SK Hynix makes memory chips that are used to store data and can be found in everything from servers to consumer devices like smartphones and laptops.

The company has benefited from the boom in AI as a major supplier of high-bandwidth memory, or HBM, chips used to power AI data center servers.

“As demand in the memory segment increased due to customers’ increasing investment in AI infrastructure, SK Hynix once again surpassed the previous quarter’s record high performance due to increased sales of high value-added products.,” SK Hynix said in its earnings release.

HBM falls into the broader category of dynamic random access memory, or DRAM (a type of semiconductor memory used to store data and program code that can be found in PCs, workstations, and servers).

SK Hynix has distinguished itself in the DRAM market by gaining an early lead in HBM and establishing itself as a major supplier to the world’s leading AI chip designer. Nvidia.

However, their main competitors are US-based Micron and South Korea-based technology giant SAMSUNGThey are working to catch up in space.

micron already provided by Nvidia According to a local source, Samsung recently passed Nvidia’s qualification tests for an advanced HBM product, while some of its HBM technology report last month.

“With innovations in artificial intelligence technology, the memory market has shifted to a new paradigm, and demand has begun to spread across all product areas,” SK Hynix Chief Financial Officer Kim Woohyun said in the earnings release. he said.

“We will continue to strengthen our AI memory leadership by responding to customer demands through market-leading products and differentiated technological capabilities,” he added.

The HBM market is expected to grow over the next few years, reaching nearly $43 billion by 2027, giving memory makers like SK Hynix a strong earnings advantage, MS Hwang, research director at Counterpoint Research, told CNBC.

“[F]”It will be important for SK Hynix to continue making profits for the company to maintain and improve its competitiveness,” he added.

A. report Earlier this month, it was revealed from Counterpoint Research that SK Hynix had a leading 38% share of the DRAM market in terms of revenue in the second quarter of the year and was increasing its share in this market. surpassed Samsung in the first quarter.

The report stated that the global HBM market grew 178% year-on-year in the second quarter, with SK Hynix dominating the space with a 64% share.

Samsung will announce its earnings on Thursday.