South Korea’s SK Hynix, a leading memory chipmaker operating under South Korea’s SK Group, reported record revenue and profit for the second quarter of 2025. The company is publicly traded on the Korea Exchange under ticker 000660, and plays a crucial role in Nvidia’s (NVDA) AI success, as it is a key supplier of high-bandwidth memory (HBM) chips. This record revenue was driven by a surge in demand for high-bandwidth memory used in artificial intelligence. Revenue increased 35% year-over-year to 22.23 trillion won, equivalent to approximately $16.17 billion. Operating profit jumped nearly 69% to 9.21 trillion won, beating expectations. Net income came in at 6.996 trillion won, up 70% from the same period last year.
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AI Boom Lifts SK Hynix as HBM Sales Take Center Stage
The strong results reflect a shift in the company’s core business. SK Hynix, once viewed as a cyclical supplier of commodity memory, has emerged as a global leader in high-performance memory chips for AI infrastructure. High-bandwidth memory, or HBM, contributed 77% of the company’s DRAM revenue in the second quarter. SK Hynix currently holds about 70% of the global HBM market and expects to double HBM sales in 2025 compared to last year.
Demand for AI memory continues to grow due to investment by major tech companies, as well as the spread of AI applications into PCs and smartphones. The company expects further tailwinds from ongoing government and enterprise investment in AI-related technologies. The company plans to complete mass production readiness for its next-generation HBM4 chips by the end of the year and expand production of 12-layer HBM3E chips with a capacity of 36 gigabytes.
Quarter-on-quarter, SK Hynix saw revenue rise 26% and operating profit increase 24%. The company noted strong pricing conditions and stable customer inventory levels. Management believes that the second half of the year will continue to see demand, supported by new product launches.
Overtaking Samsung
The results also reflect SK Hynix’s growing position in the global memory market. In the first quarter, the company overtook Samsung Electronics (GB:SMSN) in DRAM revenue for the first time. It has also matched Samsung’s combined DRAM and NAND revenue in the second quarter, according to Counterpoint Research.
One short-term factor supporting demand may be stockpiling by customers amid concerns over U.S. trade policy. SK Hynix acknowledged that future sales could be affected by how those policies evolve. In response to broader industry uncertainty, South Korea has announced a 33 trillion won ($24.1 billion) support package for its semiconductor sector.
What Is NVDA Stock Price Target?
Since SK Hynix is not traded on the NYSE, we examine Nvidia’s price target. The company boasts a Strong Buy consensus, with an average NVDA stock price target at $182.49. This implies a 6.86% upside.
