As noted the day before, analysts expected SK hynix to post a 38% quarterly revenue growth and a 129% operating profit, but the actual growth figures announced by this South Korean memory maker were higher. The company’s revenue grew by 42% last quarter, while its operating profit increased by 158%.
Image Source: SK Hynix
In absolute terms, SK hynix’s revenue reached $12.36 billion, and its operating profit increased to $5.2 billion. In sequential comparison, there was a negative trend, but this is generally typical for the transition from the fourth quarter to the first. SK hynix’s revenue decreased by 11% sequentially, and its operating profit fell by 8% after setting a record for the corresponding financial indicator in the fourth quarter. The first quarter’s results were not a record, but they were inferior only to the results of the fourth quarter of last year.
The company’s representatives explained that the dynamics of profit in the first quarter reflected its success in the implementation of memory for the artificial intelligence segment. According to the manufacturer, the expenses of AI systems market participants on infrastructure development will continue to grow, since there is still demand for the creation of “sovereign projects” in this area from the authorities of large countries. At the same time, SK hynix emphasizes that geopolitical instability will create volatility in demand in the second half of this year. This did not prevent the company from maintaining its forecast for doubling the demand for HBM by the end of 2025, since agreements for the supply of relevant products in this period were concluded a year earlier. The development of AI in the smartphone segment, according to management, will push consumers to upgrade their devices to those containing more powerful memory chips.