SK Hynix Reports Record Q3 Profit on Soaring AI Memory Chip Demand

SK Hynix Inc (KS:000660) posted a record-breaking third-quarter operating profit of 11.383 trillion won ($8 billion), marking a 62% surge from the previous year as booming demand for AI-driven memory chips continues to propel growth. The result slightly exceeded Bloomberg’s forecast of 11.23 trillion won, while revenue climbed 39% year-over-year to 24.449 trillion won.

The South Korean chipmaker, a key supplier to NVIDIA Corporation (NASDAQ:NVDA), credited the profit surge to escalating investments in artificial intelligence infrastructure worldwide. Demand for its high-value memory products—particularly high-bandwidth memory (HBM) and DDR5 chips used in servers—remains strong as companies race to expand AI capabilities.

SK Hynix announced it will accelerate the migration of its advanced memory technologies to keep pace with AI industry demand. The firm has finalized discussions with customers regarding HBM supply for 2025 and confirmed full demand coverage for its DRAM and NAND products. Additionally, it began mass production of its next-generation HBM4 chips in September and plans to commence shipments in the fourth quarter, reinforcing its leadership in the AI memory market.

The company’s shares have repeatedly hit record highs ahead of the earnings release, driven by optimism surrounding global AI infrastructure investments. SK Hynix remains the largest supplier of advanced memory to the AI industry and has seen substantial growth from increased demand over the past two years.

Earlier in October, SK Hynix also entered into a partnership with OpenAI to supply advanced memory solutions and collaborate on building AI data centers, further strengthening its position in the rapidly expanding artificial intelligence ecosystem. As AI continues to revolutionize computing, SK Hynix’s innovations in high-performance memory are solidifying its dominance in the next wave of technology growth.