SK hynix hits record profit on AI chip demand

Chipmaker SK hynix reported on Thursday that its net profit surged by nearly 400 percent year-on-year to a record level in the first quarter, driven by the ongoing artificial intelligence boom that continues to fuel demand for advanced chips despite concerns over potential disruptions from the Middle East conflict.

The company said net profit reached 40.3 trillion won (approximately $27.2 billion) in the January–March period, significantly exceeding the 29.4 trillion won forecast from analysts surveyed by Bloomberg, News.Az reports, citing AFP.

Quarterly revenue also surpassed 50 trillion won for the first time in the company’s history, while operating profit nearly doubled compared to the previous quarter, reflecting robust market conditions.

SK hynix noted that although the first quarter is typically marked by seasonal weakness, demand remained strong due to increased investment in artificial intelligence infrastructure. The company added that as AI technologies evolve from large-scale model training to more advanced forms such as agentic AI—which performs continuous real-time inference across diverse service environments—the underlying demand for memory solutions is expanding further.

The rapid growth of AI has driven up both prices and shipments of traditional memory chips, while significantly boosting demand for high-bandwidth memory (HBM) chips, a critical component in AI servers.

This surge in demand has translated into a sharp rise in the company’s market performance, with SK hynix shares climbing by around 600 percent over the past year. On Thursday morning, its stock edged up approximately one percent as South Korea’s benchmark KOSPI index opened at a record high.

News.Az 

By Nijat Babayev