SK Hynix Reports Record Q1 Profit Amid Surging AI Chip Demand

SK Hynix reported first-quarter revenue of 52.58 trillion won, equivalent to $35.55 billion, nearly tripling from the same period last year and surpassing 50 trillion won for the first time. Operating profit reached 37.61 trillion won, a fivefold increase year-over-year and nearly double the previous quarter, with an operating margin of 72%, an all-time high.

The results aligned closely with analyst estimates, though revenue fell slightly short of the expected 53.55 trillion won and profit missed the 37.92 trillion won forecast.

The company attributed the performance to booming demand for artificial intelligence infrastructure, particularly high-bandwidth memory (HBM) chips used in AI data centers. SK Hynix stated that strong AI demand persisted despite the typical seasonal downturn in the first quarter.

As AI evolves toward agentic systems requiring real-time inference, memory demand is expected to grow further, the company said.

“The importance of memory has become greater than ever ... The DRAM market grew 30% quarter-over-quarter for two consecutive periods, fueled by HBM demand that has constrained capacity and led to broader memory shortages. Rivals include Micron and Samsung Electronics, with Samsung reclaiming the top spot in DRAM revenue in the fourth quarter of 2025, per Counterpoint Research. Samsung shares reached a new intraday record of 227,000 on Thursday, while SK Hynix shares rose as much as 3.6% in early trading before closing down 0.9%.”

Challenges SK Hynix plans to supply samples of its seventh-generation HBM4E in the second half of the year, targeting mass production in 2027. The company announced a 19 trillion won investment in a new manufacturing plant in South Korea to expand capacity. SK Group Chairman Chey Tae-won stated in March 2026 that the global chip wafer shortage could persist until 2030, with demand outpacing supply and a projected shortfall exceeding 20%.

Expanding wafer capacity could take four to five years, he added.

MS Hwang, a research analyst at Counterpoint Research, said first-quarter results from memory companies indicate strong profitability and greater-than-expected memory needs for AI inference. Companies are rushing to secure supply, and SK Hynix's profits could continue rising even if price gains slow in the second half of the year, Hwang noted.

However, a prolonged conflict in the Middle East could disrupt supplies of essential materials like helium, bromine, and tungsten, potentially impacting the AI supply chain. SK Hynix stated it has diversified suppliers and built sufficient inventory, expecting limited production impact.

“[D]espite the fact that first quarter is typically a seasonal downturn, strong demand persisted due to expanded investments in AI infrastructure.”