SK hynix posts Q1 earnings surge as analysts lift annual revenue outlook above 300 trillion won

SK hynix posted a first-quarter earnings surge, reporting revenue of 52.5763 trillion won and operating profit of 37.6103 trillion won, results the company said set a new benchmark for the chip industry. Analysts said the performance suggests growth that could extend into the second half, rather than a brief upswing.

In a regulatory filing Thursday, SK hynix said first-quarter operating profit rose 405.5% from a year earlier to 37.6103 trillion won. Revenue climbed 198.1% to 52.5763 trillion won.
 
High-bandwidth memory, or HBM, was a key driver of profitability, the report said. With demand for AI server memory surging, fifth-generation HBM (HBM3E) and next-generation HBM have been in short supply. As a higher-value product than conventional DRAM, HBM helped lift overall operating profit, it said.
 
Experts said SK hynix is widening its technology lead and raising barriers to entry. They cited close partnerships with customers and a customized production system that reduces inventory burdens while improving profitability.
 
Ahn Ki-hyeon, executive director of the Korea Semiconductor Industry Association, said SK hynix’s customized strategy has built resilience despite external economic volatility. He called it a signal the company has moved away from a structure centered on commodity products to a model focused on higher-profit, qualitative growth.
 
The report said concerns seen in past memory cycles — often described as a “winner’s curse” or a “chicken game” — have eased. It attributed that to explosive AI demand reinforcing a supplier-favorable market and to advanced process transitions, reshaping the industry toward profits supported by technology barriers.
 
The company’s second-half results are expected to rise further as the industry enters a seasonally strong period, the report said. It pointed to mass production of sixth-generation HBM4 supplies for Nvidia, a recovery in the enterprise SSD (eSSD) market and demand tied to new IT products as potential tailwinds.
 
With SK hynix’s Cheongju M15X set to begin full operations within the year, the report said expanded output could also lead to direct and indirect job creation and increased local spending.
 
Brokerages raised their market consensus for SK hynix’s annual revenue to more than 300 trillion won and lifted operating profit expectations to a level exceeding 230 trillion won, the report said.
 
Kim Rok-ho, an analyst at Hana Securities, said global big tech companies appear willing to accept some memory price increases despite cost pressures. He said that could give SK hynix an opportunity to use a rising-price environment to expand market share.