DRAM and NAND flash memory shipments exceeded expectations, contributing to the company's best quarterly results, it said.

South Korean chipmaker SK Hynix reported solid second-quarter results due to artificial intelligence (AI)-related demand for its high-performance, energy-efficient memory chips, and also issued upbeat commentary for the second half.

The company is a major supplier to U.S. big tech firms, including Nvidia (NVDA) and Apple (APPL). 

Nvidia stock trades just shy of its record high, riding on its exposure to AI technology.

Seoul, South Korea-based SK Hynix reported net income of 7 trillion won ($5.1 billion) for the second quarter of the fiscal year 2025. This marks a 70% year-over-year (YoY) increase but a 14% sequential drop.

Revenue climbed 35% YoY and 26% sequentially to 22.23 trillion won. The net profit margin was 31%

SK Hynix attributed its strong quarterly performance to aggressive investments by global big tech companies in AI, which led to a steady increase in demand for AI memory.

DRAM and NAND flash memory shipments exceeded expectations, contributing to the company's best quarterly results, it said.

SK Hynix expanded sales of 12-high HBM3E in the DRAM space, while also registering growth in NAND sales across all applications.

HBM refers to high bandwidth memory chips designed for high-speed data transfer and reduced power consumption, and are particularly used in high-performance computing and AI applications.

The company expects demand for memory to continue to grow as customers plan to launch new products in the second half. It was particularly positive about AI inference and sovereign AI.

Looking ahead, SK Hynix expects solid performance of its products and an expected doubling of HBM capacity YoY to generate solid earnings.

(Note: 1 Korean won = $0.00073)

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