SK hynix Q2 2024 financials: quarter revenues hit all-time high, global #1 AI memory provider

SK hynix has announced its Q2 2024 financial results, with quarter revenues hitting an all-time high, and SK hynix cementing its position as the leader of AI memory providers.

2

The South Korean memory giant recorded 16.4 trillion won in revenue, 5.46 trillion won in operating profit (with an operating margin of 33%), and 4.12 trillion won in net profit (with a net margin of 25%) in Q2 2024.

SK hynix notes that quarter revenues reached an all-time high, "far exceeding" the previous record of 13.81 trillion won in Q2 2022. SK hynix said that the continuous rise in overall prices of DRAM and NAND products, with unstoppable demand for AI memory, including HBM, led to a 32% increase in revenues compared to the prior quarter.

SK hynix has been pumping out larger volumes of HBM3E and DRAM for servers, with HBM sales skyrocketing by over 80% compared to the previous quarter (Q1 2024) and over 250% compared to this time last year in Q2 2023.

The company forecasts that demand for AI server memory will "continue to rise" in the second half of 2024, with sales of high-performance memory products will increase as new PC and mobile products supporting On-Device AI will be released onto the market. This will be in the form of SK hynix's new GDDR7 memory that we'll see debut on NVIDIA's next-gen GeForce RTX 50 series "Blackwell" graphics cards. On-Device AI we'll see in the market soon, according to SK hynix.

SK hynix is also working on the construction of its new Cheongju M15X plant, with mass production expected in the second half of 2025 in order to "cope with the growing demand for AI memory". On top of that, SK hynix plans to start the construction of the first fab in its Yongin semiconductor cluster in March 2025, and complete it in May 2027, as scheduled.

SK hynix Chief Financial Officer Kim Woohyun said: "We were able to reduce the borrowings by 4.3 trillion won compared to the first quarter while making essential investments during the second quarter in line with its profitability-oriented investment stance. The company will further solidify the position as a leader in AI memory products by focusing on developing the best process technology and high-performance products based on a stable financial structure".