SK Hynix HBM3E 16-Layer Showcased at CES (Image provided by SK Hynix)
Rival Samsung Falls Short Amid Inventory Pressures, Misses Estimates
SEOUL, July 23 (Korea Bizwire) — South Korean chipmaker SK hynix Inc. is expected to post record earnings for the second quarter, driven by surging demand for high bandwidth memory (HBM) chips used in artificial intelligence applications, according to analyst estimates released Wednesday.
In a survey conducted by Yonhap Infomax, the data unit of Yonhap News Agency, analysts forecast that SK hynix will report 20.6 trillion won ($14.9 billion) in revenue for the April–June period, a 25.5% increase from a year earlier. Operating profit is projected to jump 65% to 9 trillion won, also a record.
If confirmed, the results would surpass the company’s previous quarterly highs of 19.8 trillion won in revenue and 8.1 trillion won in operating profit, both set in the fourth quarter of 2023.
The earnings momentum comes as SK hynix consolidates its leadership in the fast-growing HBM segment, a critical component in high-performance AI chips. Market tracker Counterpoint Research estimated the company generated $15.5 billion in memory chip sales during the quarter, matching its larger rival Samsung Electronics Co., largely on the strength of HBM shipments.
Analysts expect SK hynix to maintain its edge in the HBM market, citing competitive advantages in technology and pricing. The company is set to release its second-quarter earnings on Thursday.
An employee working at a semiconductor fab (factory) (Image courtesy of SK hynix)
Samsung Electronics, by contrast, issued weaker-than-expected guidance earlier this month. The company projected a 56% decline in operating profit to 4.6 trillion won, falling short of the market consensus of 6.1 trillion won. Analysts attributed the shortfall to slower HBM chip supply and higher inventory levels amid tightening U.S. export controls on advanced AI chips to China.
As a precaution, Samsung expanded its inventory loss reserves during the quarter to reflect the potential depreciation of unsold chip stock—further weighing on its bottom line. Full results are scheduled for release on July 31.
Heightening demands for HBM with the spread of AI (Image courtesy of Yonhap)
Meanwhile, LG Electronics Inc. also issued disappointing second-quarter guidance. The company expects operating profit to have fallen 46.6% year-over-year to 639.1 billion won, with continued weakness in its television division offsetting modest gains in other consumer electronics and enterprise businesses. LG is set to release its full earnings report on Friday.
Kevin Lee (kevinlee@koreabizwire.com)
