SK Hynix's Q2 operating profit soared 68%, accelerating HBM production capacity expansion to cope with the surging demand for AI computing power.

After SK Hynix announced record-breaking quarterly performance, it announced that it will accelerate its advanced memory chip production capacity expansion plan, reflecting both the surge in demand for artificial intelligence and its determination to maintain its technological leadership. The South Korean semiconductor giant saw a 68% year-on-year increase in operating profit in the second quarter, reaching 9.21 trillion Korean won (approximately $6.7 billion), with a net profit of 6.9962 trillion Korean won. Revenue growth of 35% reached a historical high, surpassing market expectations. The company clearly stated that it will accelerate its investment in cutting-edge areas such as High Bandwidth Memory (HBM) to address the increasing memory demand for new customer products in the second half of the year. As global artificial intelligence infrastructure is being rapidly built, the technological revolution sparked by ChatGPT has led many countries to establish independent AI systems, directly driving the demand for HBM. As a key supplier of HBM for NVIDIA Corporation, SK Hynix's leading position in the HBM field is further solidified. MS Hwang, Director of Counterpoint Research, pointed out: "Record-breaking performance is driven by HBM, while demonstrating the company's leadership in the overall memory market for DRAM and NAND chips." It is worth noting that SK Hynix became the global leader in the DRAM market by revenue in the first quarter of this year, and is currently competing with Samsung for leadership in the memory market. Delays in Samsung Electronics' HBM3E 12-layer product certification have created favorable conditions for SK Hynix. This South Korean chip manufacturer has gained an extended delivery cycle in the profitable HBM market, but needs to remain vigilant in the face of the financially powerful Samsung. Although SK Hynix's stock price has fallen by about 10% from its high point in 2025 this month, and Goldman Sachs Group, Inc. has downgraded its rating for the first time in three years, the market generally believes that its technological superiority remains competitive. Currently, SK Hynix and Samsung together hold over 80% market share in the HBM market, while NVIDIA Corporation, as the giant controlling over 90% of the global AI chip market, provides Samsung with opportunities to surpass by shifting towards new-generation memory. In terms of applications, NVIDIA Corporation became the first public company to exceed a market value of $4 trillion this month. Expectations of resuming sales of H20 AI chips to China (due to adjustments in U.S. AI restrictions on China) boosted market confidence. However, analysts believe that the long-term development of advanced memory manufacturers needs to break free from dependence on NVIDIA Corporation and diversify through expanding to other customers. SK Hynix is deepening its cooperation with institutions like OpenAI to strengthen technological ties by co-building AI infrastructure. On July 21, OpenAI CEO Sam Altman revealed on social media that the company plans to deploy a million GPUs and explore hundredfold scale expansion by the end of the year, forming a synergistic effect with SK Hynix's strategic layout. It is worth noting that SK Group Chairman Chey Tae-won recently led SK Hynix CEO Park Sung-wook to visit the OpenAI headquarters in San Francisco, where they discussed semiconductor cooperation with Altman. Korean media reports indicate that the discussion focused on HBM technology collaboration. With the exponential growth in demand for AI computing power, the strategic value of memory chips as core infrastructure continues to rise. The ultimate outcome of this technological competition may depend on the industry's ability for collaborative innovation and market responsiveness.