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.
SK hynix, a leading supplier of high-bandwidth memory chips to industry giant Nvidia and a key player in South Korea's technology-driven economy, reported a staggering 632% increase in its third-quarter operating profit. The surge in profits, amounting to 83.33 trillion won (US$62.8 billion), was primarily fueled by the skyrocketing demand for advanced memory chips from the artificial intelligence industry.
The company's net profit for the July-September period witnessed an impressive 215.7% increase, reaching 39.77 trillion won. Additionally, SK hynix's sales for the same period reached 104.61 trillion won. The company attributes its remarkable financial performance to a positive feedback loop, where AI-driven productivity gains and new revenue streams in sectors like software development, customer service, and search have contributed to a heightened adoption of AI technologies.
Despite concerns about potential overvaluation in the AI sector, SK hynix's strategic position and growth trajectory within the global race to build AI data centers have undoubtedly bolstered its financial standing.
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- SK hynix third-quarter operating profit jumps 632% on-year freemalaysiatoday.com
