SK Hynix Achieves Record Q1 Profit as Memory Prices Rise

• Revenue reached 52.58 trillion won ($35.53 billion), surpassing 50 trillion won for the first time quarterly, while operating profit hit 37.61 trillion won, nearly double the previous quarter
• The DRAM market recorded 30% quarter-over-quarter growth for two consecutive quarters due to rising memory prices driven by HBM demand, though Samsung reclaimed the top DRAM revenue spot from SK Hynix
• SK Group Chairman warned the global chip wafer shortage will likely persist until 2030, with building additional supply taking 4-5 years and a projected shortfall exceeding 20%

Summary: SK Hynix Achieves Record Q1 Profit Amid AI-Driven Memory Demand

Key Financial Results:

SK Hynix reported record first-quarter results for the period ending March:

• Revenue: 52.58 trillion won ($35.53 billion), surpassing 50 trillion won quarterly for the first time
• Operating profit: 37.61 trillion won, nearly doubling from the previous quarter
• Results slightly below LSEG estimates of 53.55 trillion won revenue and 37.92 trillion won operating profit

Market Drivers:

The South Korean memory chip manufacturer's performance was fueled by surging artificial intelligence demand. SK Hynix is the world's leading supplier of high-bandwidth memory (HBM) chips used in AI datacenters, with Nvidia as a key customer. Despite Q1 typically being a seasonal downturn, strong AI infrastructure investment sustained demand.

Industry Position:

SK Hynix gained competitive advantage over rivals Micron and Samsung through early HBM leadership, though Samsung recently reclaimed top DRAM revenue position in late 2024. The broader DRAM market has experienced 30% quarter-over-quarter growth for two consecutive quarters due to rising prices.

Supply Outlook:

SK Group Chairman Chey Tae-won warned in March 2026 that global chip wafer shortages will likely persist until 2030. HBM demand continues outpacing supply, straining manufacturing capacity. Expanding wafer production requires 4-5 years, with projected supply shortfalls exceeding 20%.

Market Implications:

Sustained memory shortages and pricing power position SK Hynix and competitors for continued strong profitability through the decade. AI infrastructure buildout remains the primary demand catalyst, supporting elevated memory chip valuations.