At SK hynix’s booth during the 2025 Semiconductor Exhibition (SEDEX) held at COEX in Seoul’s Gangnam District, the company’s sixth-generation high bandwidth memory chip, the HBM4, was on display. (Yonhap)
SEOUL, Oct. 30 (Korea Bizwire) — SK hynix reported the highest quarterly profit in its history, buoyed by surging global demand for high-bandwidth memory (HBM) chips that power artificial intelligence systems, becoming only the second South Korean company after Samsung Electronics to surpass 10 trillion won ($7.1 billion) in quarterly operating profit.
The world’s second-largest memory chipmaker said Wednesday its third-quarter operating profit jumped 61.9 percent from a year earlier to 11.38 trillion won, while revenue rose 39.1 percent to 24.45 trillion won. Net profit more than doubled to 12.6 trillion won. Both revenue and profit marked all-time highs.
The performance was driven largely by booming sales of HBM, a premium memory product essential for AI computing. Though HBM accounts for just over 20 percent of SK hynix’s DRAM shipments, it generated more than half of the division’s operating profit, according to industry estimates.
The company’s operating margin climbed to 47 percent in the third quarter, up from 23 percent early last year.
SK hynix currently dominates the global HBM market with a 62 percent share by shipments, far ahead of rivals Samsung Electronics and Micron.
The company has already secured supply contracts with major clients, including Nvidia, for 2025, ensuring continued growth momentum amid the global AI investment boom.
Analysts say demand for high-performance memory will remain strong as tech giants expand their AI data centers, including through the U.S.-led Stargate project. The global HBM market is projected to more than double this year to $38.2 billion and could exceed $50 billion next year.
SK hynix Inc. showcases its actual HBM4 chip at the 2025 Semiconductor Exhibition (SEDEX) in Seoul on Oct. 22, 2025. (Yonhap)
The AI-driven memory surge has also lifted prices of conventional DRAM and NAND flash chips. Benchmark PC DRAM prices in September climbed above $6 for the first time in nearly seven years, while NAND flash prices rose for a ninth consecutive month.
With memory shortages expected to deepen, analysts forecast another record quarter ahead. “The fourth quarter will likely mark a new peak in SK hynix’s performance,” said Cha Yong-ho, an analyst at LS Securities.
The company is now focusing on maintaining its lead as the industry shifts toward the next generation, HBM4, which will power Nvidia’s upcoming “Rubin” AI accelerators in 2026.
SK hynix completed HBM4 development in September and plans to begin mass production in the fourth quarter, expanding its manufacturing capacity at its M15X plant in Cheongju and new facilities in Yongin and Indiana, U.S.
“SK hynix has already secured next year’s demand across all memory products, including DRAM and NAND,” said Park Yoo-ak, an analyst at Kiwoom Securities. “The current upcycle may last longer than expected as supply remains tight and AI-driven demand accelerates.”
Kevin Lee (kevinlee@koreabizwire.com)
