SK Hynix, the other South Korean semiconductor giant, narrowly beat Wall Street expectations with strong financial results for the just-ended quarterly period ending in March. The company beat sales and operating profit projections. This success came mainly from a drastic increase in demand for its high bandwidth memory products that power generative artificial intelligence (AI) chipsets.
For the first quarter, SK Hynix posted a revenue of 17.64 trillion won, about $12.36 billion. This figure beat market expectations of 17.26 trillion won. The company’s operating profit beat estimates, coming in at 7.44 trillion won, well above the expected 6.62 trillion won.
SK Hynix announced a jaw dropping 42% year over year revenue increase this quarter compared to the same time last year. This year-on-year, apples-to-apples comparison emphasizes their incredible progress. In addition, the operating profit increased by a staggering 158%, which underscores the strong demand for its cutting-edge memory solutions. These results highlight the company’s impressive positioning as the semiconductor market continues to accelerate in an ever-changing landscape, especially when it comes to AI tech.
That said, it is important to note that SK Hynix’s revenue represented an 11% decrease on a q-o-q basis. The 3Q operating profit fell 8% from the prior quarter. This decrease points to certain volatility within the semiconductor sector, despite overall demand continuing to explode.
SK Hynix’s high bandwidth memory is in high demand. This spike is largely the result of the accelerating pace of generative AI technology taking hold across various sectors. As companies increasingly integrate AI solutions into their operations, the need for advanced memory solutions that support these applications remains robust.