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SK Hynix Reports Record Q1 Profits Driven by AI Chip Demand

The South Korean memory chip maker credits soaring demand for AI memory chips, particularly high-bandwidth memory, for its financial turnaround.

SK Hynix is the leader in the high-bandwidth memory that works alongside Nvidia’s AI accelerators. Photo: dpa
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SK hynix announces $14.6 billion will be spent on expanding production capacity of its next-gen HBM for future AI GPUs, noting 'soaring demand' for HBM.

Overview

  • SK Hynix recorded a net profit of $1.4 billion in Q1 2024, marking its first profit in five quarters.
  • The company's revenue hit $9 billion, a 144% increase year-on-year, fueled by strong sales of AI server products.
  • SK Hynix plans to invest over $14.5 billion in new production facilities to meet the growing demand for AI memory chips.
  • The firm has become a key supplier of high-bandwidth memory chips to Nvidia, essential for AI training GPUs.
  • Industry experts predict a 60% annual growth in the HBM market, underscoring the strategic importance of SK Hynix's expansion plans.