SK hynix third-quarter operating profit jumps 632% on-year
The global race to build AI data centres has transformed the South Korean chip giant's fortunes despite concerns that the sector may be overvalued.
South Korean chip maker SK hynix announced a staggering 632% surge in its third-quarter operating profit on Wednesday, driven primarily by the surging demand for its advanced memory chips from the artificial intelligence (AI) sector. The company reported an operating profit of 83.33 trillion won (US$62.8 billion) for the July-September period, a sharp increase from the previous year. SK hynix's net profit for the same period climbed by 215.7% to 39.77 trillion won, while its sales surged to 104.61 trillion won.
The company attributed its impressive financial performance to a "virtuous cycle" where AI-driven productivity gains and new revenue streams, including software development, customer service, and search, have fueled increased AI adoption. SK hynix, a specialist supplier of high-bandwidth memory chips to US technology giant Nvidia, is a key player in South Korea's tech-driven economy. The global race to establish AI data centers has significantly benefited the company, despite some concerns about the sector's valuation.
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- SK hynix third-quarter operating profit jumps 632% on-year freemalaysiatoday.com
