SK hynix Achieves Record Q4 Profits Driven by Surge in AI Chip Demand

Synopsis

On January 23, SK hynix reported its fourth-quarter earnings surged to record levels due to the increasing demand for AI chips, including HBM, significantly outpacing market expectations. The company's strong performance extended into 2024, setting new revenue and profit benchmarks.

Key Takeaways

SK hynix reports record Q4 earnings.
Fourth-quarter net income reached 8 trillion won.
Operating income surged over 20 times.
Annual revenue increased by 102 percent.
Strong demand for AI memory bolstered performance.

Seoul, Jan 23 (NationPress) The South Korean semiconductor powerhouse SK hynix announced on Thursday that its fourth-quarter profits reached an all-time high, fueled by increasing demand for artificial intelligence (AI) chips, particularly high bandwidth memory (HBM), significantly surpassing market forecasts.

The company's revenues and operating profits for 2024 also set new records, according to their report.

As the world's second-largest memory chip producer, SK hynix disclosed in a regulatory submission that its net income for the fourth quarter soared to 8 trillion won (approximately $5.6 billion), rebounding from a loss of 1.37 trillion won the previous year, as reported by Yonhap News Agency.

For the period spanning October to December, its operating income surged over 20 times, rising to 8.08 trillion won from 346 billion won a year prior. Sales jumped 74.8 percent year-on-year to 19.76 trillion won.

These earnings exceeded market predictions, with analysts estimating an average net profit of 5.99 trillion won, based on a survey by Yonhap Infomax, the financial analytics division of Yonhap News Agency.

SK hynix credited its unexpectedly strong performance to the robust demand for AI memory, reinforcing its role as a global leader in HBM technology.

Throughout 2024, the company's net income reached a record 19.79 trillion won, recovering from a loss of 9.13 trillion won the prior year.

Operating income also returned to profitability, reaching a record 23.46 trillion won, bouncing back from a loss of 7.73 trillion won in 2023. The prior record of 20.8 trillion won was achieved in 2018 during the semiconductor boom.

Annual revenue experienced a remarkable increase of 102 percent, climbing to 66.19 trillion won, surpassing the previous record of 44 trillion won set in 2022.

The firm indicated that sales of HBM continued to expand rapidly in the fourth quarter, making up over 40 percent of its total DRAM revenue. Consistent demand for enterprise solid state drives (SSDs) also contributed to the impressive sales figures.

SK hynix is at the forefront of the HBM sector, which has been experiencing swift growth alongside the rise of generative AI.

—IANS