SK Hynix: AI Demand Drives Record Profit

South Korean semiconductor giant SK Hynix has reported record-breaking financial results for the third quarter of 2024, with revenues of 17.5731 trillion won, operating profit of 7.03 trillion won (40% margin), and net profit of 5.7534 trillion won (33% margin). The company's success was driven by strong demand for AI memory, with HBM sales increasing over 70% quarter-on-quarter (QoQ) and 330% year-on-year (YoY). HBM represented 30% of DRAM revenues in Q3 and is expected to reach 40% in Q4. Both DRAM and NAND average selling prices rose in the mid-10% range compared to the previous quarter.


The rise of generative AI and multi-modal AI services has significantly contributed to the surge in HBM demand. As global big tech companies invest heavily in AI and artificial general intelligence (AGI), the need for high-performance memory solutions, such as HBM and eSSD, continues to grow. SK Hynix's leadership in AI memory technology has positioned the company at the forefront of this trend, enabling it to capitalize on the increasing demand for AI-optimized memory in PC and mobile devices.


SK Hynix's focus on high value-added products and profitability has solidified its competitive position in the AI memory market. By expanding sales of premium products like HBM and eSSD, the company has achieved an all-time high in quarterly revenues, exceeding the previous record by more than 1 trillion won. SK Hynix's strategic approach to product and supply strategies has allowed it to maximize profitability while securing stable revenues, further cementing its status as the world's number one AI memory company.

As the demand for AI memory continues to grow, SK Hynix is well-positioned to lead the global AI memory market in the coming years. The company's long-term growth strategy, which focuses on both business stability and profitability, will enable it to capitalize on the increasing demand for HBM and eSSD. SK Hynix's commitment to innovation and investment in AI memory technology ensures that it remains a key player in the rapidly evolving AI landscape.