SK hynix announced on Wednesday that its second-quarter net profit rose 1,242 percent compared to the same period last year. The company posted a net profit of 94 trillion won, or about $64 billion. It called the results an all-time high quarterly performance.
The South Korean firm makes high-bandwidth memory chips. These chips are used in AI systems built by companies like Nvidia.
Operating profit for the April to June period reached 60 trillion won. That marks a 557 percent increase from the previous year. Revenue for the quarter came in at 79 trillion won.
AI Chip Demand Drives The Numbers
Much of the net profit boost came from a one-time sale. SK hynix sold its 20 trillion won stake in flash memory maker Kioxia during the quarter.
Park Joon-deok, marketing chief of the company's AI microchip division, spoke to investors and reporters on a call. He addressed concerns that AI infrastructure spending might be slowing down.
Some companies are now renting data center space instead of building new centers. New AI systems are also becoming more efficient and need less memory. Park said these trends do not signal a pullback in AI investment.
He said instead that companies are working to get more use out of the AI infrastructure already built. SK hynix expects memory demand to keep growing as AI services generate more revenue for its customers.
The company plans to invest around 40 trillion won this year. Growth is tied to major tech firms expanding their AI infrastructure spending.
SK Group, the parent company of SK hynix, announced plans on Saturday for a new deal with Nvidia. The partnership is valued at $500 billion and will fund AI infrastructure investment.
Earlier this month, SK hynix raised $26.5 billion through a stock listing in the United States. It was one of the largest equity offerings in the world.
Shares Drop Despite Strong Results
Even with the earnings jump, SK hynix shares have fallen 33 percent over the past month. Rival Samsung Electronics has seen its shares drop 41 percent in the same period.
SK hynix stock fell 14 percent on Tuesday, the day before the earnings report came out. Analyst Kim Dong-won at KB Securities pointed to two causes. Investors are worried about how long the AI boom can last, and conflict in the Middle East has added to market unease.
Kim still expects memory chip prices to rise by at least 30 percent in the third quarter. He also forecasts that supply shortages will continue through 2028.
Samsung Electronics is set to report its own quarterly earnings on Thursday. The company has forecast that its operating profit will increase by 1,800 percent compared to last year.
