SK Hynix earnings hit record profit but fall short of estimates

SK Hynix earnings showed another record quarter for the South Korean memory-chip maker, powered by demand for artificial intelligence hardware. For everyday investors tracking the AI supply chain, the catch is that the headline growth still came in below analyst expectations reported by LSEG.

SK Hynix said revenue for the quarter ended June rose 257% from a year earlier to 79.32 trillion won. Operating profit, a measure of profit from the company’s core business, climbed nearly 557% year over year to 60.54 trillion won, according to the company’s release.

Both figures missed LSEG SmartEstimates cited by CNBC. Analysts had expected revenue of 84 trillion won and operating profit of 64 trillion won. SmartEstimates give more weight to analysts with stronger forecasting records, according to CNBC.

The quarter still marked a new high for SK Hynix. Compared with the previous quarter, revenue rose 51% and operating profit increased 61%, the company’s release showed.

Why did SK Hynix profit rise so much?

SK Hynix’s results were driven by demand for high-bandwidth memory, or HBM, a type of advanced memory chip built to move large amounts of data quickly for AI systems. AI servers need large volumes of fast memory alongside processors, so HBM has become a key part of the hardware stack behind training and running AI models.

CNBC reported that the performance reinforces SK Hynix’s position in HBM, where the company has become a major supplier to large technology customers. SK Hynix makes memory chips used in data centers and consumer devices such as smartphones.

Nvidia is among SK Hynix’s key customers, according to CNBC. CNBC also reported that the relationship recently expanded through a multiyear deal worth more than $500 billion.

For investors, the quarter shows how strong demand for AI infrastructure is flowing beyond the biggest chip designers and into suppliers that provide critical components. It also shows why expectations matter: a company can post record growth and still disappoint if Wall Street had priced in even more.

How did SK Hynix results compare with expectations?

• Revenue: 79.32 trillion won, compared with 84 trillion won expected by LSEG SmartEstimates cited by CNBC.
• Operating profit: 60.54 trillion won, compared with 64 trillion won expected.
• Year-over-year revenue growth: 257%, according to the company’s release.
• Year-over-year operating profit growth: nearly 557%, according to the company’s release.
• Quarter-over-quarter revenue growth: 51%, with operating profit up 61%.

The report keeps investor attention on whether AI-related memory demand can remain strong enough to support elevated expectations. SK Hynix’s latest numbers point to powerful growth, while the miss against estimates shows the bar for AI chip suppliers remains high.

This story draws on original reporting from CNBC.