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Chipmaker SK Hynix’s quarterly working revenue has greater than doubled on sturdy gross sales of superior reminiscence chips utilized in synthetic intelligence merchandise, amid stockpiling forward of looming US tariffs.
Analysts stated SK Hynix toppled arch-rival Samsung Electronics because the world’s greatest dynamic random-access reminiscence (Dram) chipmaker for the primary time throughout the first quarter.
Working revenue rose 158 per cent to Won7.44tn ($5.2bn) within the first three months of this 12 months, a lot greater than the Won6.6tn forecast by analysts polled by Bloomberg.
Gross sales elevated 42 per cent 12 months on 12 months to Won17.6tn. The sturdy earnings had been pushed by sturdy gross sales of excessive bandwidth reminiscence (HBM) chips utilized in AI {hardware}.
However the chipmaker warned of attainable demand volatility within the second half resulting from macroeconomic uncertainties whereas stressing that HBM demand shall be much less affected by potential US tariffs on semiconductors.
“Demand uncertainty will increase because of tariff policy changes and other restrictions, but this is expediting demand for IT consumer goods as some consumers rush to buy products before prices rise,” Kyu Hyun Kim, head of Dram advertising and marketing, instructed analysts on Thursday.
SK Hynix, a important HBM provider to Nvidia, captured 36 per cent of the Dram market within the January-March interval, adopted by Samsung at 34 per cent, in line with Counterpoint Analysis. Dram is essentially the most broadly used reminiscence chip in PCs and servers to assist course of knowledge. HBMs are made by stacking Dram chips.
“The changed dynamics will probably continue for the time being as Samsung finds it difficult to catch up with SK Hynix in HBM,” stated Daniel Kim, an analyst at Macquarie. “AI and HBM are fast-changing markets. It is not easy for Samsung to catch up as a latecomer.”
SK Hynix widened its lead in HBM, with a 70 per cent market share within the first quarter, Counterpoint Analysis stated. Its HBM market share will stay above 50 per cent this 12 months, with Samsung’s share falling to beneath 30 per cent and US rival Micron Expertise’s share rising to nearly 20 per cent, in line with market researcher TrendForce.
The corporate expects Large Tech to take care of its spending on server chips to compete in AI, whereas new AI options in smartphones will gas substitute demand, growing gross sales of high-performance cell Dram chips. SK Hynix nonetheless expects HBM demand to double this 12 months.
Its shares fell 0.8 per cent on Thursday morning as quick promoting of its inventory surged to a file excessive of Won1.5tn up to now this month, in line with Bloomberg knowledge, with the trade going through growing uncertainties from looming US tariffs and Washington’s more durable export controls on China, in addition to rising world recession fears.
International traders bought a web Won2.8tn of the corporate’s shares this month, after the inventory worth greater than doubled over the previous two years, pushed by the AI growth. The shares have fallen a few fifth from a January excessive.
“Earnings season won’t matter with larger forces at work,” Morgan Stanley analysts stated in a analysis be aware. “The real tariff impact on memory resembles an iceberg, with more danger unseen below the surface and still approaching.”
President Donald Trump has stated tariffs on chip imports would start “very soon”. The US has additionally imposed particular licensing necessities on Nvidia promoting its H20 chips to Chinese language clients, with the US chipmaker recording a $5.5bn earnings hit this month because of this.
“This can affect Hynix’s earnings, but the impact will probably be limited, given the supply shortage of high-end HBM chips,” stated Macquarie’s Kim. “Positive momentum is expected for the company this year and next unless the global economy slips into recession.”
