SK Hynix, a leading South Korean memory chip manufacturer, reported record first-quarter profit and revenue, driven by surging prices for its products amid strong demand from the artificial intelligence sector [1]. The company posted revenue of 52.58 trillion won ($35.55 billion), nearly tripling from the same period last year and surpassing 50 trillion won for the first time, though this figure missed analyst estimates of 53.55 trillion won [1]. Operating profit reached 37.61 trillion won, growing fivefold year-over-year and nearly doubling from the previous quarter, with an all-time high operating margin of 72% [1].
SK Hynix attributed its strong performance to persistent demand for memory chips, particularly high-bandwidth memory (HBM) used in AI datacenters, despite the first quarter typically being a seasonal downturn [1]. The company has maintained a leading position in the HBM market, holding a 57% market share, and is a key supplier to Nvidia, the world's leading AI processor maker [1]. However, Samsung reclaimed the top spot in DRAM revenue in the last three months of the previous year, according to Counterpoint Research [1].
The broader DRAM market has experienced 30% quarter-over-quarter growth for two consecutive quarters, fueled by rising memory prices and surging HBM demand, which has strained manufacturing capacity and triggered a broader memory shortage [1]. SK Group Chairman Chey Tae-won stated in March 2026 that the global chip wafer shortage is likely to persist until 2030, with building additional wafer supply expected to take at least four to five years and a projected shortfall exceeding 20% [1].
No specific analyst opinions or forward-looking statements beyond the company's and SK Group Chairman's comments were provided in the article.
CONCLUSION
SK Hynix's record-breaking first-quarter results underscore the ongoing surge in AI-driven demand for memory chips, particularly HBM. Despite missing revenue estimates, the company's strong profit growth and market leadership in HBM highlight its strategic position, though industry-wide supply constraints are expected to persist for years.