Seoul: SK hynix Inc. announced that its third-quarter operating profit exceeded 10 trillion won (US$6.97 billion), driven by strong performance in the high bandwidth memory (HBM) sector, which plays a critical role in artificial intelligence (AI) infrastructure.
According to Yonhap News Agency, the company's operating profit reached 11.38 trillion won for the July-September period, compared to 7.02 trillion won the previous year. This marks the first time the South Korean chipmaker has recorded a quarterly operating profit above 10 trillion won. Net profit for the same period more than doubled to 12.59 trillion won, while revenue increased by 39.1 percent to 24.44 trillion won.
The company's financial results surpassed market expectations, with analysts having estimated a net profit of 8.84 trillion won, as surveyed by Yonhap Infomax, the financial data arm of Yonhap News Agency. SK hynix attributed this impressive growth to the rising global prices of dynamic random access memory (DRAM) and NAND flash, alongside robust demand for high-end AI server products.
SK hynix reported significant sales of high value-added products, including the 12-high HBM3E and DDR5 for servers, contributing to the record-breaking performance. The demand for AI servers led to a more than twofold increase in shipments of high-capacity DDR5s of 128GB or more from the previous quarter.
The company has completed discussions with major customers, potentially including Nvidia Corp., for HBM supply in 2026. The recently developed HBM4, which entered mass production in September, aligns with customer performance needs and supports industry-leading speeds. Full-scale HBM4 shipment expansion is planned for 2026.
Kim Woo-hyun, chief financial officer of SK hynix, highlighted the memory market's shift to a new paradigm due to AI technology innovation. Data from Counterpoint Research showed that SK hynix held a 64 percent share of the global HBM market in the second quarter, with Micron and Samsung Electronics Co. following at 21 percent and 15 percent, respectively.
As of the third quarter's end, SK hynix reported combined cash assets of 27.9 trillion won, with net cash standing at 3.8 trillion won, given its 24.1 trillion won debt. During a conference call, the company expressed expectations of continued tight HBM supply, noting that the memory industry has entered a "super cycle." An official stated that HBM products have been sold out since 2023, and prices remain profitable.
The HBM lineup, making up 20 percent of total DRAM shipment volume, is estimated to have contributed about half of the company's operating profit. SK hynix's shares were trading at 540,500 won, reflecting a 3.74 percent increase from the previous session. The third-quarter financial report was issued before market hours.