SK Hynix Reports Strong Q1 Earnings Amid AI Chip Demand and Stockpiling Concerns

Nvidia Supplier SK Hynix's Earnings Beat Estimates on AI Boom

SK Hynix Inc. earned better-than-expected quarterly profit after US tariff-induced fears of trade disruptions pushed companies around the world to stock up on both advanced chips and memory used in PCs and smartphones. The company reported operating income of 7.44 trillion won ($5.2 billion) in the March quarter, exceeding the projected 6.6 trillion won. Revenue rose to 17.64 trillion won, the company's second-highest quarterly performance on the heels of record revenue and operating profit in the prior quarter.

SK hynix revenues boosted as US corps stockpile memory

'Inventory accumulation' as vendors hoard HBM amid tariff and other pressures South Korean memory maker SK Hynix is reporting a sales bounce due to the demand for AI systems, helped by US businesses stockpiling HBM supplies amid tariff uncertainty. The memory maker, one of the top three global suppliers, says it recorded revenues of ₩17.6 trillion ($12.3 billion) and ₩7.44 trillion ($5.2 billion) in operating profit for calendar Q1. That topline figure is up 42 percent on the same period a year ago, and down about 11 percent from the corp's all-time high of ₩19.767 trillion (nearly $14 billion) in the prior quarter. According to SK Hynix, the memory market ramped faster than expected due to orders for AI-capable systems and what it terms "inventory accumulation demand." The latter seemingly refers to system builders and others in the memory supply chain stockpiling ahead of anticipated tariff increases from the Trump administration, as has already been seen in the PC channel. SK says it responded to the increased demand with an expansion in sales of high value-added products such as DDR5 DRAM and its 12-layer HBM3E (high-bandwidth memory) used in AI and high-performance compute (HPC) systems. On a conference call for investors and analysts, SK Hynix discussed the uncertainty surrounding US tariff policies, and admitted the impact of these is difficult to assess without detailed criteria. Approximately 60 percent of the memory's giant's revenue comes from US customers. SK previously told investors that all the HBM it can manufacture has already been sold, through to the end of 2026. Increased orders for high-capacity server DRAM is being fueled by AI model development, particularly due to DeepSeek's impact, which lowers AI development costs. SK expects customers to keep buying high-capacity memory for AI workloads, as AI models require more memory for precise results. Richard Gordon, Vice President & Practice Lead for Semiconductors at The Futurum Group, warned that interpreting these results can be tricky at the moment, as the memory market is undergoing a transition. "Usually, Q1 is a sequentially weak quarter due to seasonality, but the memory cycle and market dynamics can override seasonality," he told The Register. Seasonal softness was a factor when PCs and smartphones were the main drivers for memory sales, but this is now shifting to datacenters, where seasonality is less of an issue. "The bigger factor is that the DRAM market is at the early stages of a significant structural change, which SK hynix is especially exposed to since about 80 percent of its revenue is DRAM. In short, the DRAM market is transitioning from a highly commoditized market, where market pricing was heavily affected by supply and demand, to a specialized, almost application-specific market where premium pricing is much more stable (and profits are higher)," Gordon said. For AI in particular, the industry is shifting to HBM with long-term supply and pricing agreements, given the stiff competition among those building AI datacenter infrastructure, he added. "For this reason, I don't think the reference to stronger demand coming from inventory accumulation is necessarily to do with tariff uncertainty - it's probably more to do with customers eager to guarantee future supply of HBM, which is critical for AI infrastructure." Perhaps because of this, SK Hynix is forecasting HBM demand to approximately double compared with last year. As a result, sales of 12-layer HBM3E are expected to account for more than 50 percent of SK's HBM3E revenues in Q2. However, it started supplying high-performance LPCAMM2 memory modules for AI PCs to customers during in Q1, and plans to ship SOCAMM (Small Outline Compression Attached Memory Module), a low-power DRAM module for AI servers, "when demand ramps up." ®

SK Hynix profits double on memory chip stockpiling ahead of US tariffs

Chipmaker SK Hynix's quarterly operating profit has more than doubled on strong sales of advanced memory chips used in artificial intelligence products, amid stockpiling ahead of looming US tariffs. Analysts said SK Hynix toppled arch-rival Samsung Electronics as the world's biggest dynamic random-access memory (Dram) chipmaker for the first time during the first quarter. Operating profit rose 158 per cent to Won7.44tn ($5.2bn) in the first three months of this year, much higher than the Won6.6tn forecast by analysts polled by Bloomberg. Sales increased 42 per cent year on year to Won17.6tn. The strong earnings were driven by robust sales of high bandwidth memory (HBM) chips used in AI hardware. But the chipmaker warned of possible demand volatility in the second half due to macroeconomic uncertainties while stressing that HBM demand will be less affected by potential US tariffs on semiconductors. "Demand uncertainty will increase because of tariff policy changes and other restrictions, but this is expediting demand for IT consumer goods as some consumers rush to buy products before prices rise," Kyu Hyun Kim, head of Dram marketing, told analysts on Thursday. SK Hynix, a main HBM supplier to Nvidia, captured 36 per cent of the Dram market in the January-March period, followed by Samsung at 34 per cent, according to Counterpoint Research. Dram is the most widely used memory chip in PCs and servers to help process data. HBMs are made by stacking Dram chips. "The changed dynamics will probably continue for the time being as Samsung finds it difficult to catch up with SK Hynix in HBM," said Daniel Kim, an analyst at Macquarie. "AI and HBM are fast-changing markets. It is not easy for Samsung to catch up as a latecomer." SK Hynix widened its lead in HBM, with a 70 per cent market share in the first quarter, Counterpoint Research said. Its HBM market share will remain above 50 per cent this year, with Samsung's share falling to below 30 per cent and US rival Micron Technology's share rising to almost 20 per cent, according to market researcher TrendForce. The company expects Big Tech to maintain its spending on server chips to compete in AI, while new AI features in smartphones will fuel replacement demand, increasing sales of high-performance mobile Dram chips. SK Hynix still expects HBM demand to double this year. Its shares fell 0.8 per cent on Thursday morning as short selling of its stock surged to a record high of Won1.5tn so far this month, according to Bloomberg data, with the industry facing increasing uncertainties from looming US tariffs and Washington's tougher export controls on China, as well as growing global recession fears. Foreign investors sold a net Won2.8tn of the company's shares this month, after the stock price more than doubled over the past two years, driven by the AI boom. The shares have fallen about a fifth from a January high. "Earnings season won't matter with larger forces at work," Morgan Stanley analysts said in a research note. "The real tariff impact on memory resembles an iceberg, with more danger unseen below the surface and still approaching." President Donald Trump has said tariffs on chip imports would begin "very soon". The US has also imposed special licensing requirements on Nvidia selling its H20 chips to Chinese customers, with the US chipmaker recording a $5.5bn earnings hit this month as a result. "This can affect Hynix's earnings, but the impact will probably be limited, given the supply shortage of high-end HBM chips," said Macquarie's Kim. "Positive momentum is expected for the company this year and next unless the global economy slips into recession."

SK Hynix quarterly profit soars 158% to top estimates as chip demand surges on AI boom

Illustration of the SK Hynix company logo seen displayed on a smartphone screen. South Korea's SK Hynix on Thursday topped quarterly revenue and operating profit estimates, with demand for its high bandwidth memory offerings used in generative AI chipsets remaining robust. Here are SK Hynix's first-quarter results versus LSEG SmartEstimates: Revenue rose about 42% in the March quarter compared with the same period a year earlier, while operating profit surged 158%, year on year. On a quarter-on-quarter basis, revenue dropped 11%, while operating profit fell 8%.

Nvidia supplier SK Hynix logs bumper Q1, sees limited tariff impact on AI chips

SK Hynix, a key supplier to Nvidia, witnessed a significant surge in net profit during the first quarter. The profit more than doubled, driven by robust demand for AI chips. The company anticipates limited impact from potential US tariffs, while its HBM sales plans remain unchanged. It expects continued spending on server chips.SK Hynix, a key supplier of high-bandwidth memory processors to Nvidia, said quarterly profit more than doubled and demand for AI chips was so robust that it expects only limited impact on those products from potential U.S. tariffs. Washington has launched an investigation into semiconductor imports, arguing that extensive reliance on foreign production is a national security threat. There have also been concerns that increased U.S. export controls on chips to China, which have resulted in a $5.5 billion hit to Nvidia, could harm SK Hynix. "Regarding our HBM business, what we can clearly state is that there has been no change to our sales plans for this year to key customers, which remain in line with the levels set in previously signed contracts," Kim Ki-tae, the company's head of HBM sales & marketing, told an earnings briefing. While it expects some volatility in demand for smartphone and PC chips, SK Hynix's relatively upbeat estimate of limited pain from U.S. tariffs echoes a bullish outlook from TSMC , the world's largest contract chip maker and another big beneficiary of the AI boom. SK Hynix logged its second-highest quarterly operating profit ever in the first quarter with a 158% jump to 7.4 trillion won ($5.2 billion), boosted by strong AI-related demand and stockpiling of smartphone and PC chips ahead of potential increases in U.S. tariffs. That handily beat a 6.6 trillion won LSEG SmartEstimate, which is weighted toward more consistently accurate analysts. Revenue soared 42% to 17.6 trillion won. Some analysts have expressed worries that advance purchases and stockpiling across the industry seen in recent months could lead to weaker demand in the second half. But SK Hynix said that scenario seemed unlikely, given the current limited visibility into how tariffs would pan out. "It's unlikely that pull-in demand will rise significantly enough to trigger concerns about inventory buildup," said Kim Kyu-hyun, head of DRAM Marketing. SK Hynix said it expects spending by big tech firms on server chips to continue as they seek to capture early opportunities in the artificial intelligence market. In smartphones, the advancement of AI features in new models is expected to drive replacement demand, boosting sales of high-performance mobile DRAM chips, it added. It is also not that exposed to U.S. tariffs. The company said while U.S. customers account for 60% of its total revenue, it ships most of its products to non-U.S. countries. Apple makes iPhones in China and India, while Nvidia makes AI server products in Mexico and Taiwan. SK Hynix also noted that the low-cost AI models developed by China's DeepSeek will lead to lower entry barriers and more competition in the AI industry, boosting demand for high-density memory chips. The company has been leading a global race to meet explosive demand for HBM chips, a crucial component of chipsets made by the likes of Nvidia that help process vast amounts of data to train AI models. It is the main HBM chip supplier to Nvidia as cross-town rival Samsung Electronics has struggled to keep up. SK Hynix shares, which surged by a fifth in value last year, were down 1.2%, underperforming the benchmark KOSPI's 0.5% fall. ($1 = 1,426.4500 won)

Nvidia supplier SK Hynix Q1 profit soars on AI demand, trade jitters By Investing.com

Investing.com-- SK Hynix Inc (KS:000660) clocked a sharp jump in its first-quarter profit on Thursday, as the South Korean Nvidia (NASDAQ:NVDA) supplier continued to benefit from strong demand for advanced memory chips from the artificial intelligence industry. Fears of U.S.-China trade disruptions and increasing Chinese AI development also helped spur chip demand through the first quarter, both of advanced chips and those used in consumer electronics. SK Hynix' operating profit jumped over 150% to 7.44 trillion won ($5.2 billion) in the three months to March 31, also beating expectations for a 6.6 trillion won print. Revenue jumped to 17.54 trillion won, and was the company's second-highest quarterly revenue print after a record high in the December quarter. SK Hynix mass produces the most advanced high-bandwith memory chips used in AI applications, making the company a key part of the chipmaking industry. The company is a major supplier to AI major Nvidia, which uses SK Hynix' memory chips across its AI offerings. The South Korean chipmaker has benefited greatly from increased AI chip demand over the past two years, as more companies rushed to build data center capacity and roll out their own AI programs. In the first quarter, SK Hynix also benefited from companies stockpiling chips in anticipation of heightened global trade disruptions under U.S. President Donald Trump, who slapped higher tariffs on several industries and kickstarted a trade war with China.

SK Hynix's First-Quarter Earnings Surged on AI Chip Demand -- Update

SK Hynix delivered another set of strong earnings in the first quarter, beating market expectations thanks to brisk demand for artificial-intelligence chips that it thinks will persist even amid U.S. tariff uncertainty. As the main supplier of high-bandwidth-memory products for Nvidia's most advanced graphics-processing units, South Korea's SK Hynix has been benefiting from demand for high-performance computing chips for data servers and AI applications. It expects that trend to continue, reiterating a forecast for HBM demand to double in 2025 even as it warned that "elevated macro uncertainties" under President Trump's tariff policy could create volatility in chip demand in the second half of the year. First-quarter net profit was 8.108 trillion won, equivalent to $5.68 billion, more than quadrupling from a year earlier, the memory-chip maker said Thursday. That topped both the previous quarter's record 8.006 trillion won and market views. Analysts had tipped profit at 5.074 trillion won, according to a consensus estimate compiled by FactSet. Revenue rose 42% from a year earlier to 17.639 trillion won, while operating profit more than doubled to 7.441 trillion won, beating rival Samsung Electronics' estimated 6.600 trillion won profit for the quarter. SK Hynix's stronger-than-expected quarterly results come as Trump's trade war clouds the outlook for the global chip industry. If U.S. tariffs sharply slow global growth and investing, that could curb appetite for products like HBM. SK Hynix executives said on an earnings call Thursday that U.S. tariffs had limited impact on the first-quarter results but that they will be flexible in investment this year given the risks posed by trade restrictions. The company continues to hold a lead over Samsung and Micron Technology, having begun mass producing advanced 12-layer HBM3E products last year. SK Hynix expects these fifth-generation HBM products to account for over 50% of its total HBM3E revenue this year. Last month, it said it delivered samples of new, cutting-edge 12-layer HMB4 products to customers and was preparing for mass production in the second half of 2025. According to research firm Counterpoint Technology Market Research, SK Hynix may have dethroned Samsung as the world's largest maker of dynamic random-access memory chips in the first quarter thanks to its edge in higher-end HBM products. It remains to be seen whether SK Hynix can widen that lead in the coming quarters as it navigates tariffs challenges. Like other U.S. trading partners, South Korea was hit with a baseline tariff of 10%, which could rise to 25% if the country doesn't reach a trade deal with Washington during a 90-day pause on the so-called reciprocal tariffs. Trump has also slapped levies on auto, steel and aluminum imports, and announced plans to impose a separate duty on semiconductors soon. The uncertainty over which tariffs will go into effect and in what form has already hurt SK Hynix's stock. Its shares, up nearly 10% in the first three months of the year, have given back more than half of those gains.

Nvidia supplier SK Hynix's Q1 profit more than doubles, tops expectations

SEOUL (Reuters) -SK Hynix's first-quarter profit more than doubled, driven by strong sales of advanced chips used in generative artificial intelligence chipsets and as some customers stockpiled semiconductors ahead of potential U.S. tariffs. The Nvidia supplier reported a 7.4 trillion won ($5.19 billion) operating profit for the January-March period versus 2.9 trillion won a year earlier. That compared with a 6.6 trillion won average forecast by LSEG SmartEstimate, which is weighted toward analysts who are more consistently accurate. Quarterly revenue for the South Korean firm rose 42% to 17.6 trillion won. SK Hynix has been leading a global race to meet explosive demand for high bandwidth memory (HBM) chips, a crucial component of AI chipsets made by the likes of Nvidia which help process vast amounts of data to train AI models. The firm has been a main HBM chip supplier to Nvidia, as its cross town rival Samsung Electronics has struggled to keep up in the race. ($1 = 1,426.4500 won) (Reporting by Heekyong Yang and Joyce Lee; Editing by Himani Sarkar)