(Bloomberg) — SK Hynix Inc. logged its fastest pace of revenue expansion since at least 2010, buoyed by strong sales of high-end memory chips used to power AI applications.
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Sales at the world’s No. 2 maker of memory more than doubled to 12.4 trillion won ($9 billion) in the March quarter, beating expectations. Operating income was 2.89 trillion won, outperforming estimates for a profit of 1.8 trillion won. It was its biggest quarterly profit since 2022.
The Icheon, South Korea-based firm is reporting days after Texas Instruments Inc. gave a bullish revenue forecast for the current quarter, indicating that a slump in demand for industrial and automotive components may be easing. Bigger rival Samsung Electronics Co.’s preliminary operating profit showed a sharp rebound in the first quarter, reflecting a turnaround, while Micron Technology Inc. last month also gave a strong sales forecast.
SK Hynix, which in December became South Korea’s second-most valuable company, is the leader in the high-bandwidth memory that works alongside Nvidia Corp.’s AI accelerators. Earlier this week, the company announced a plan to invest some $15 billion in South Korea to meet rapidly growing demand for such high-end chips, which it expects to grow 60% per annum.
That spending underscores how it’s locked in a global race to supply components essential to creating generative AI services. The boom in artificial intelligence is also helping lift the broader market. SK Hynix’s shares have gained 27% this year as investors bet AI and a recovery in global IT spending will push the memory market out of a years-long slump.
Read more: SK Hynix CEO Sees Tight HBM Supply Extending Into 2025
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