SK Hynix has reported a dramatic 158% surge in quarterly operating profit, reaching 7.4 trillion won ($5.2 billion), its second-highest ever, driven by surging demand for AI-related chips and stockpiling of smartphone and PC processors ahead of potential U.S. tariffs.
The company also saw a 42% year-on-year rise in revenue to 17.6 trillion won, beating market expectations. Despite growing trade tensions and Washington’s ongoing probe into semiconductor imports, SK Hynix projected limited impact from U.S. tariffs, mirroring the optimistic stance of TSMC, another major AI chip supplier.
Responding to concerns over tightening U.S. export controls and a $5.5 billion revenue blow to Nvidia, SK Hynix assured investors that its sales plans remain unchanged and in line with existing contracts. Kim Ki-tae, head of HBM sales and marketing, emphasized that sales to major clients, including Nvidia, are on track. The firm added that while volatility in smartphone and PC chip demand is possible, current dynamics do not suggest a serious risk of inventory overhang.
The company is banking on continued investments by tech giants in AI server chips and growing demand for high-performance DRAM in AI-enabled smartphones to sustain momentum. Kim Kyu-hyun, head of DRAM marketing, noted that current trends do not indicate an excessive buildup in stockpiled inventory. Moreover, SK Hynix expects that affordable AI models from companies like China’s DeepSeek will spur broader adoption, further boosting demand for its high-bandwidth memory (HBM) chips.
Though 60% of SK Hynix’s revenue comes from U.S. customers, the firm clarified that most shipments are directed to non-U.S. destinations, mitigating exposure to American tariffs. With its key client Nvidia assembling products in Mexico and Taiwan, and Apple manufacturing in China and India, the memory chip giant remains well-positioned. Despite a 1.2% drop in SK Hynix shares against the KOSPI’s 0.5% dip, the firm remains optimistic about sustained growth in the AI sector, where it continues to lead the race for HBM chip dominance ahead of Samsung Electronics.