SK Hynix reported record-breaking revenue and operating profit in the third quarter of 2024, fueled by strong demand for high-bandwidth memory (HBM) and increased sales of DRAM for high-performance servers. The company’s revenue reached 17.57 trillion won, while operating profit soared to 7.03 trillion won, marking a 40% margin. Net profit came in at 5.75 trillion won, with a 33% margin.
These figures exceed market expectations by about 8%, surpassing the consensus estimate of 6.76 trillion won in operating profit. In contrast, SK Hynix posted a loss of 1.79 trillion won in the same period last year during a global semiconductor downturn.
This quarter represents the company’s highest-ever performance, with revenue surpassing its previous record of 16.42 trillion won set in the second quarter. Operating profit and net profit also broke the company’s record from the third quarter of 2018, during a semiconductor boom, when it achieved 6.47 trillion won in operating profit and 4.69 trillion won in net profit.
SK Hynix attributed its success to strong demand for AI-related memory products from data center customers. Sales of high-value items like HBM and enterprise solid-state drives (eSSD) were major growth drivers. HBM sales surged more than 70% quarter-on-quarter and jumped 330% compared to last year.
“With increased sales of high-margin products, both DRAM and NAND saw their average selling prices rise by mid-teen percentages compared to the previous quarter, contributing to our record-breaking operating profit,” SK Hynix said in a statement.
Looking forward, the company expects demand for AI memory to continue growing into 2025, driven by advancements in generative AI into multimodal forms—capable of processing text, images, voice, and video— and ongoing investments by global tech companies in artificial general intelligence (AGI).
SK Hynix also forecasts recovery in the PC and mobile memory markets next year, following the release of AI-optimized memory products for these devices. The company plans to focus on high-value products to maintain its position as a leader in AI memory solutions and drive profitability.
SK Hynix is accelerating its shift to next-generation HBM3E memory, with mass production of its 12-layer HBM3E products slated for the fourth quarter of this year. HBM is expected to account for 40% of total DRAM sales in the final quarter, up from 30% in the third quarter.
In the NAND market, the company aims to enhance production efficiency while expanding sales of high-capacity eSSDs, which are seeing growing demand.
Kim Woo-hyun, CFO of SK Hynix, said, “By achieving our highest-ever performance, we have cemented our position as the global leader in AI memory. Moving forward, we will continue to adapt our product and supply strategies to meet market demand, ensuring stable revenue growth while maximizing profitability.”
