SK Hynix logs record Q2 profit driven by AI chip supercycle demand, establishing HBM leadership amid continued supply constraints
SK hynix Inc. posted record revenue and operating profit in the second quarter, driven by robust demand for high bandwidth memory (HBM) chips and other memory products. Net profit reached 93.92 trillion won (US$64.6 billion) for the April-June period, surging 1,242.5 percent year-over-year. Operating income soared 557.2 percent on-year to 60.54 trillion won, while sales increased 256.8 percent to 79.31 trillion won.
The company's operating profit margin reached a record high of 76 percent for the second quarter, compared with 75 percent in the first quarter. This margin means SK hynix generated roughly 7,600 won in operating profit for every 10,000 won in sales—an exceptionally high level rarely seen in the manufacturing sector. SK hynix outperformed rival Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, in operating profit margin for the third consecutive quarter since the fourth quarter of 2025. TSMC posted a 60.3 percent operating margin in the second quarter, leaving a gap of about 15 percentage points between the two companies.
The earnings exceeded market expectations. The average analyst estimate for net profit was 63.55 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. The strong results are expected to ease investor concerns over a potential artificial intelligence bubble and fears that demand for AI chips may have peaked, which recently triggered a sharp decline in technology stocks.
SK hynix has cemented its leadership in the HBM market by moving early to develop the advanced memory chips, becoming a key supplier to Nvidia as demand for AI accelerators has surged. According to market research firm Counterpoint Research, SK hynix accounted for 58 percent of the global HBM market by revenue in the first quarter, maintaining its position as the industry's leading supplier. Samsung Electronics and Micron Technology each held a 21 percent share. This HBM leadership helped propel SK hynix past Samsung Electronics to become South Korea's most valuable listed company by market capitalization for the first time in 25 years in June.
The company expanded its investment capacity further in the second quarter through strong cash generation. Cash and cash equivalents rose to approximately 88 trillion won as of the end of June, up more than 33 trillion won from 54.3 trillion won three months earlier. SK hynix plans to use the funds to expand investments in key production facilities, including the semiconductor cluster in Yongin south of Seoul, the ramp-up of its M15X fabrication plant in Cheongju, and next-generation HBM manufacturing capacity.