SK Hynix continued its record-breaking performance in the second quarter of this year. With an all-time high operating profit exceeding 60 trillion won, it dispelled concerns from some quarters about a "peak-out" in semiconductor profitability driven by AI (artificial intelligence).
On the 29th, SK Hynix announced through a public disclosure that its consolidated revenue for the second quarter reached 79.3187 trillion won, while operating profit hit 60.5426 trillion won. Year-on-year, revenue surged by 257% and operating profit jumped by 557%. Compared to the previous quarter, revenue increased by 51% and operating profit rose sharply by 61%. This marks five consecutive quarters of record-breaking results. The cumulative operating profit for the first half alone reached 98.1529 trillion won, nearing the 100th trillion won mark.
Notably, with a sharp rise in memory semiconductor prices, the operating profit margin climbed by approximately 5 percentage points (p) from the previous quarter to reach 76%. This is higher than key customer NVIDIA (65.6%) and TSMC (60.3%), the absolute powerhouse in foundry (contract manufacturing), and comparable to Micron, the third-largest player in the memory industry (80.4%). Given that Samsung Electronics is also expected to see a memory division operating profit margin in the 75th–80% range, it is being evaluated as the dawn of a "memory golden age."
Thanks to these strong results, SK Hynix's financial structure has become more robust. With cash assets totaling 88 trillion won and borrowings limited to just 18.6 trillion won, net cash stands at 69.4 trillion won. Net cash doubled within three months.
However, the figures fell short of analysts' expected operating profit forecast (approximately 64 trillion won). Recent forecasts have been around 60–62 trillion won, which aligns with this result.
SK Hynix expressed confidence that performance in the second half will be even better. The key drivers are high-value-added products such as HBM (high-bandwidth memory), DRAM for AI servers, and eSSD (enterprise SSD). The company has already signed long-term supply agreements (LTA) with over 10 major global customers, including leading big tech firms, typically based on five-year terms.
During the management briefing held today, SK Hynix dismissed peak-out concerns by citing these market conditions. "The growing willingness of customers to establish long-term contracts proves that demand for memory in the AI ecosystem will continue," the company stated with confidence. This reflects the reality that demand being felt on the ground is exceeding expectations, as recently highlighted by SK Group Chairman Choi Tae-won, who described the explosive demand for AI semiconductors using the term "abyss of chaos."
Accordingly, new investments to expand production capacity are expected to accelerate. On this day, SK Hynix emphasized that "in a situation of severe supply shortage like now, supplying memory products needed by the AI ecosystem is the manufacturer's obligation."
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