SK Hynix released its second-quarter financial results today, reporting a surge in profit and revenue. However, the numbers still missed analyst estimates.
The firm posted revenue of 79.3 trillion won, below LSEG SmartEstimates of 84 trillion won. Operating profit reached 60.54 trillion won, short of the 64 trillion won expected.
AI Demand Powers A Record Quarter For SK Hynix
According to the company’s release, the quarter marked its best performance on record. SK Hynix reported revenue grew 257% year over year.
Operating profit rose 557%, lifting the operating margin to 76%. Net income came in at 93.92 trillion won, up 1,242% year on year.
The growth extended a record set just 3 months earlier. Revenue came in 51% above the first quarter, with operating profit up 61%. SK Hynix also passed 100 trillion won in cumulative first-half revenue for the first time.
Follow us on X to get the latest news as it happens
The chipmaker attributed the performance to sustained demand from expanding investments in Artificial Intelligence (AI) infrastructure. High-performance AI server products led price increases during the quarter.
“Both DRAM and NAND flash memory prices experienced significant quarter-over-quarter increases. SK hynix achieved top-tier profitability by expanding sales centered on high-value-added products, including HBM, DRAM for AI servers, and eSSD,” the firm said.
The results also strengthened the balance sheet. Cash and equivalents reached 88 trillion won, expanding the net cash position to 69.4 trillion won. Furthermore, SK Hynix said it is expanding multi-year contract discussions to secure supply stability.
Nonetheless, the strong quarter did not translate into an immediate rally. SK Hynix shares dropped more than 3% after the market opened as investors weighed the estimate miss. The stock later pared losses and traded up 0.19% at press time.
The choppy session fits a broader pattern. Despite remaining in the green year to date, the stock has fallen more than 40% over the past month on persistent volatility.
Subscribe to our YouTube channel to watch leaders and journalists provide expert insights
Source: BeInCrypto
