SK Hynix smashes earnings estimates as AI memory demand drives record profit

Core Insights - SK Hynix reported record quarterly revenue and profit, driven by rising memory prices and strong demand from generative AI chipsets [1][2] - The company is competing with Samsung for the title of the world's top memory producer [1] Financial Performance - Revenue increased by approximately 66% in the December quarter compared to the same period last year, reaching 32.827 trillion won ($23 billion) [2][6] - Operating profit surged by 137% during the same period, amounting to 19.17 trillion won [2][6] Market Dynamics - The company has capitalized on the AI boom as a key supplier of high-bandwidth memory (HBM) chips, essential for AI data center servers [3] - HBM revenue more than doubled year-on-year, significantly contributing to the company's record performance [4] - Demand for HBM has outstripped supply, leading to shortages in less advanced memory chips used in consumer electronics and electric vehicles [4] Price Trends - Memory prices have been increasing due to supply shortages, which are expected to persist into the next year as SK Hynix and other manufacturers await capacity expansions [5]