One of the biggest memory chip companies in the world, SK Hynix, of South Korea, reported record quarterly profitability on Thursday thanks to robust sales of high bandwidth memory used in generative AI chipsets.
However, CFO Kim Woohyun’s warning that inventory changes from PC and smartphone manufacturers, along with strong protective trade policies and geopolitical uncertainties, clouded the forecast for memory demand in 2025 caused SK Hynix shares to drop 2.7%.
LSEG SmartEstimate, which is biassed towards analyst projections that are more reliably correct, is contrasted with SK Hynix’s fourth-quarter results as follows:
Revenue: 19.91 trillion won vs 19.77 trillion won ($13.7 billion) Operating profit: 8.02 trillion won vs 8.08 trillion won ($5.6 billion) Compared to the same period last year, revenue increased by around 75% during the October–December quarter, while operating profit increased by 2,236% to $8.08 trillion.
Revenue increased by 12% on a quarterly basis, and operating profit increased by 15% to reach a new high.
The chipmaker, which is a major supplier to American AI chip manufacturer Nvidia, has profited from the surge in artificial intelligence servers.
Source (CNBC)
