SK Hynix Reports Record Q1 Profit Amid Surging AI Memory Demand

South Korean memory chipmaker SK Hynix reported record first-quarter profit and revenue on Thursday, fueled by surging prices for its products amid robust demand from artificial intelligence applications. Revenue reached 52.58 trillion won, equivalent to $35.55 billion, nearly tripling from the same period last year but falling short of the 53.55 trillion won estimate.

Operating profit hit 37.61 trillion won, up fivefold year-over-year and nearly double from the prior quarter, with an all-time high operating margin of 72%. The results aligned broadly with analyst estimates, though revenue missed expectations. SK Hynix produces memory chips for servers, smartphones, and laptops, benefiting particularly from its position as the leading supplier of high-bandwidth memory, or HBM, essential for AI data centers.

demand persisted through what is typically a seasonal downturn, according to the company's earnings release. HBM, a type of dynamic random access memory used in PCs, workstations, and servers, has seen prices rise due to expanded investments in AI infrastructure.

SK Hynix holds a 57% market share in HBM, per data from Counterpoint Research, maintaining dominance despite competition. Rivals including Micron and Samsung have been advancing in the space, with Samsung starting shipments of its HBM4 chips in February and reclaiming the top spot in overall DRAM revenue in the last quarter of the previous year.

The company serves as a key supplier to Nvidia, the leading AI processor maker. HBM4, the sixth generation of the technology, is expected to feature in Nvidia's next-generation Vera Rubin architecture for data center AI workloads.