South Korean chipmaker SK Hynix announced a more than sixfold rise in quarterly operating profit to an all-time high on Wednesday, fueled by strong demand for advanced memory chips as major tech companies increased their investments in AI data centers.
The Nvidia supplier reported an operating profit of $41.62 billion for the April-June period, up from 9.2 trillion won a year earlier.
Revenue increased by 257% year over year in the quarter ending June compared to the previous year, while operating profit surged nearly 557% year over year, the company’s release showed.
SK Hynix credited the earnings win to “sustained demand growth from expanding AI infrastructure investments, high-performance products for AI servers led price increases, enabling the company to surpass its previous record set in the prior quarter.”
“Based on this demand outlook, SK hynix is expanding multi-year contract discussions with customers to secure mid-to-long-term supply stability. The company has finalized Long-Term Agreements (LTAs) with around 10 customers, including key strategic partners, and is continuing further discussions with major industry clients. Through these efforts, SK hynix aims to enhance operational efficiency while strengthening its mid-to-long-term business stability and sustainable growth foundation,” the company continued.
The South Korean chip manufacturer, recognized for memory chips and providing hardware for data centers, smartphones, and other consumer electronics, counts U.S. tech giants such as Nvidia among its key customers. Recently, their collaboration expanded with a multiyear contract worth over $500 billion.
By CEO NA Editorial Staff
