Nvidia supplier SK hynix reports record Q3 profit amid solid demand for AI servers

SK hynix (OTCPK:HXSCF) reported record quarterly results, driven by strong demand for its high bandwidth memory (HBM) chips used in generative AI.

The South Korean company, which is a key supplier to Nvidia (NVDA), generated 17.57 trillion won in Q3 revenues, 7.03 trillion won in operating profit (with an operating margin of 40%), and net profit of 5.75 trillion won (with a net margin of 33%) – all reaching new records.

Quarter revenues marked an all-time high, exceeding the previous record of 16.42 trillion won in the second quarter of this year by more than 1 trillion won.

SK hynix (OTCPK:HXSCF) emphasized that the demand for AI memory continued to be strong, centered on data center customers. In particular, HBM sales showed solid growth, up more than 70% from the previous quarter and more than 330% from the same period last year.

As sales increased mainly on highly profitable premium products, the average selling price of both DRAM and NAND chips rose in the mid 10% range compared to the previous quarter, which made the company mark the highest operating profit.

“While the demand of memory for AI servers such as HBM and [high-density enterprise SSD] has grown noticeably this year, the company predicts that this trend will continue next year,” the firm said in a press release.