SK Hynix Reports Record Q2 Profit on Surge in AI Chip Demand

South Korean chipmaker SK Hynix reported record quarterly profits driven by strong demand for high-bandwidth memory (HBM) chips used in artificial intelligence (AI) processors, particularly those supplied to Nvidia. The company's operating profit surged around 69%, reaching approximately $6.69 billion, with revenue rising 35%, surpassing analysts' expectations and outperforming rival Samsung Electronics. SK Hynix anticipates that AI-driven demand will remain robust through 2025 and 2026, prompting the company to increase capital expenditure and accelerate investments in advanced memory chip capacity to maintain its leadership in the premium chip segment. The firm expects to double its HBM chip sales in 2025 compared to 2024, fueled by growing competition among tech companies to enhance AI model performance. However, SK Hynix faces potential challenges from U.S. tariffs on semiconductor imports, as well as increasing competition and pricing pressures in the HBM market. Despite these headwinds, the company continues to lead as the world's top memory chip maker, largely due to its focus on AI-related technologies.