SK hynix Achieves Record Profits in 3Q24 Financial Results
- SK hynix reported record revenues, operating profits, and net profits in Q3 2024, driven largely by the demand for AI memory products.
- The company noted a remarkable increase in HBM sales, rising over 70% from the previous quarter, indicating a growing market for AI servers.
- With plans to enhance its product offerings, SK hynix aims to solidify its position as a leading player in the AI memory market.
In the third quarter of 2024, SK hynix, based in South Korea, achieved a record revenue of 17.5731 trillion won, with an operating profit of 7.03 trillion won and a net profit of 5.7534 trillion won. This performance reflects a significant increase driven primarily by the growing demand for AI memory products. The company noted that sales from its high-bandwidth memory (HBM) segment surged over 70% compared to the previous quarter, illustrating a robust market for memory tailored for AI servers. The demand for AI memory is anticipated to intensify further, attributed to ongoing investments in generative AI technologies and the pursuit of developing artificial general intelligence (AGI) by major tech firms. This environment has propelled SK hynix's strategy toward high value-added products, which have contributed significantly to the firm's profitability. Their average selling prices for DRAM and NAND also rose in the mid-10% range from the previous quarter, a reflection of the successful sales of premium products like HBM and eSSD. Looking forward, the company plans to enhance its share of HBM in the DRAM revenue from 30% in Q3 to 40% in Q4, signifying a planned transition from existing HBM3 to the more advanced HBM3E 8-layer products. In the NAND domain, SK hynix intends to increase the sales of high-capacity eSSD products in response to burgeoning market demands while optimizing production efficiencies. Overall, SK hynix has firmly established itself as a leader in the AI memory market following this unprecedented fiscal quarter, reinforcing its focus on sustainable revenue generation through advanced technologies and flexible supply strategies.