SK Hynix's Profit Skyrockets Amid AI Chip Demand Surge

South Korean memory chip giant SK Hynix announced on Thursday a record-breaking quarterly operating profit, fueled by surging demand for artificial intelligence (AI) chips, notably high bandwidth memory (HBM). The company's fourth-quarter operating profit exceeded market expectations, reflecting a substantial turnaround.

The company reported a net income of 8 trillion won (approximately $5.6 billion) in the fourth quarter, compared to a loss of 1.37 trillion won in the same period the previous year. This impressive recovery in profitability underscores SK Hynix's strategic focus on AI memory and its market-leading position in HBM technology.

Operating profit soared to 8.08 trillion won, a more than 20-fold increase from the prior year's 346 billion won, while revenues surged 74.8% year-on-year to 19.76 trillion won. These numbers highlight the robust demand for AI-related products, which continues to propel SK Hynix's financial performance.

For the year 2024, SK Hynix expects net profit to reach a record 19.79 trillion won, a stark contrast to the 9.13 trillion won loss in 2023. The company also projects operating profit to climb to an unprecedented 23.46 trillion won, surpassing the previous high during the semiconductor boom in 2018.

Annual revenue is anticipated to hit 66.19 trillion won, representing a 102% increase year-on-year, breaking the prior record of 44 trillion won set in 2022. This remarkable growth reflects SK Hynix's agility in capitalizing on the AI trend and solidifying its technological leadership.