Nvidia supplier SK Hynix posts record second-quarter profit and revenue on strong AI memory demand

Moreover, On the other hand, SK Hynix has established itself as the global leader in high bandwidth memory — a type of DRAM used in artificial intelligence servers, in this volatile climate

Jung Yeon-je | Afp | Getty ImagesSouth Korea's SK Hynix on Thursday posted record operating fit and revenue in the second quarter, driven by sustained demand for its high bandwidth memory used in artificial intelligence nology

Here are SK Hynix's second-quarter results compared with LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate: Revenue: 22

On the other hand, At the same time, SK Hynix makes memory chips that are used to store data and can be found in everything from servers to consumer devices such as smartphones and laptops

Additionally, The company said in a statement that it enjoyed strong demand and favorable pricing conditions in the first half of the year, amid market uncertainty

Additionally, SK Hynix's leadership in dynamic random access memory — a type of semiconductor memory commonly found in PCs, workstations and servers — has challenged rival Samsung Electronics' position in the memory space

AI dominanceMuch of SK Hynix's recent success in this area can be credited to its in high bandwidth memory, or HBM — a type of DRAM used for artificial intelligence computing

Furthermore, At the same time, SK Hynix has established itself as the global leader in HBM, supplying clients such as U

Furthermore, AI darling Nvidia, in light of current trends. "Demand for AI memory continued to grow, driven by aggressive AI investments from big companies," Song Hyun-jong, president and head of the Corporate Center at SK Hynix, said in the earnings call

Moreover, The company expects this investment to continue to drive healthy demand growth in the AI server market, despite macro uncertainty, with demand for general-purpose servers also expected to grow

However, Further development of AI agents with enhanced reasoning models will necessitate more high-performance memory, according to Song, who added that the liferation of AI in the PC and smartphone market will boost demand further, in light of current trends. "Additionally, investments by governments and corporations for solving AI are ly to become a new long term driver of AI memory demand," Song said, given the current landscape

Furthermore, As SK Hynix's HBM sales rise, it is also planning to complete preparations for mass duction of its next-generation memory, HBM4, before the end of this year

SK Hynix said it expected its capital expenditure in 2025 to increase, with "active investment" needed to ensure support for its HBM customers in 2026, in today's financial world

Intense competitionIn the first quarter, SK Hynix's success in HBM had seen the company overtake rival Samsung in the global DRAM market for the first time, according to Counterpoint Re

Furthermore, A report from the re firm earlier this month found that SK Hynix had matched Samsung's combined DRAM and NAND revenues in the second quarter, with both now vying for the top position in the global memory market

NAND is a type of flash memory that is used to store data in various devices

However, -based memory maker Micron nology are both seeking to catch up to SK Hynix in the HBM space

On the other hand, Micron is deploying some of its advanced ducts for use with Nvidia and other customers such as AMD

Meanwhile, Samsung has reportedly been working to get the version of its HBM chips certified by Nvidia

Furthermore, However, analysts expect SK Hynix's dominance to persist in the short-term, considering recent developments. "As of now, I believe SK Hynix still holds its leadership in the HBM race

On the other hand, Despite Samsung's and Micron's catch‑up efforts," said Ray Wang, re director of semiconductors, supply chain and emerging nology at The Futurum Group. "I expect this edge to persist through the rest of 2025 and extend into 2026," he added

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On the earnings call, an SK Hynix representative had also noted that uncertainty around U (an important development)

Furthermore, Additionally, Tariff policies led to increased purchasing demand in the first half of the year

Sales in the second half could be impacted depending on how future tariff policies evolve, the company said

Amid tariff uncertainty, South Korea announced a 33 trillion won ($24, given the current landscape