Q3 Earnings Reveal SK Hynix's Unmatched Success in AI Chip Sales Over Samsung Electronics

SK Hynix's Record Profits in Q3

SK Hynix has announced record profits for the July-September quarter, posting an operating profit of 7 trillion won (US$5.07 billion), a significant turnaround from a 1.8 trillion won loss a year earlier. The surge is attributed to strong sales of high bandwidth memory (HBM) chips vital for generative artificial intelligence (AI) technology.

Impressive Chip Demand and Sales Growth

• Q3 revenue rose 94% year on year to 17.6 trillion won.
• HBM sales increased over 70% from the previous quarter and more than 330% year-over-year.
• SK Hynix expects HBM to constitute 40% of total DRAM revenue in Q4.

As global tech companies ramp up their AI developments, SK Hynix anticipates further growth in memory chip demand. The company's strategic investments in advanced chip development have positioned it ahead of competitors like Samsung Electronics and Micron Technology.

Market Comparisons with Rivals

While SK Hynix flourishes, Samsung Electronics faces challenges, with forecasts of lower-than-expected profits in Q3. SK Hynix's shares have surged 38.5% this year, contrasting sharply with Samsung's decline of 24.7%.

The Path Ahead for SK Hynix

Looking ahead, SK Hynix is set to begin mass production of HBM3E 12-layer chips, aiming to supply these products by year-end. This commitment to chip development further highlights SK Hynix's role as a preferred supplier in the AI sector.