Key points
- Leads high-bandwidth memory market ahead of Samsung
- Strong demand driven by global AI infrastructure growth
- Seeks client expansion beyond Nvidia, including OpenAI
ISLAMABAD: HK Hynix Inc has announced plans to ramp up investment in advanced memory chip production following record second-quarter earnings, driven by soaring demand for AI-related hardware.
Nvidia supplier SK Hynix second-quarter profit soars 68% to a record high, revenue also hits new highs https://t.co/w8sSwWxbCv
— CNBC (@CNBC) July 23, 2025
The South Korean firm reported a 68 per cent year-on-year surge in operating income, exceeding expectations, as revenue jumped 35 per cent to a record 9.21 trillion won (£5.3 billion), according to AFP.
Executives said stronger visibility into 2026 high-bandwidth memory (HBM) demand, stemming from ongoing customer negotiations, is prompting an acceleration in planned spending.
Demand for memory is expected to remain robust, supported by AI infrastructure development globally in response to applications like ChatGPT.
Growing dominance
The company’s HBM chips, which power Nvidia’s AI processors, were the main driver of growth. SK Hynix now leads the HBM segment, ahead of larger rival Samsung Electronics, which has struggled to gain Nvidia certification for its top-tier HBM3E product, according to Bloomberg.
Nvidia Supplier SK Hynix posts Q2 25 Results with revenues up 35% YoY and net income up 70% YoY
“Demand for AI memory continued to grow, driven by aggressive AI investments from big tech companies”$HXSCF pic.twitter.com/ZslstS82u2
— The Transcript (@TheTranscript_) July 24, 2025
This delay has allowed SK Hynix to widen its lead in the high-margin segment.
Analysts note the company’s growing dominance not only in HBM but across the broader memory market, including DRAM and NAND chips. DRAM is used for processing, while NAND stores data.
Increasing competition
Despite its success, SK Hynix faces increasing competition. Goldman Sachs recently downgraded the stock for the first time in over three years, warning of rivals encroaching on its market share.
Together, SK Hynix and Samsung control over 80 per cent of the HBM market.
The Current #HBM Landscape
SK Hynix currently dominates the high-end HBM market, supplying leading players with state-of-the-art memory solutions. However, with demand surging, other companies aiming to enter the HBM market are developing proprietary technologies to create… pic.twitter.com/a2JOzPXeSx— Semi Vision👁️👁️ (@semivision_tw) July 21, 2025
Looking ahead, SK Hynix is aiming to diversify its client base beyond Nvidia. The company is strengthening ties with AI firms such as OpenAI, whose CEO Sam Altman revealed plans to deploy one million GPUs by year-end and scale that figure massively, reports CNBC.
Shares in SK Hynix rose by up to 3.7 per cent in Seoul on Thursday following the earnings announcement.
