CashNews.co
Driven by strong demand for AI-related memory products, Nvidia (NVDA, Financials) supplier SK hynix achieved record financial performance for the third quarter of 2024. With sales of 17.57 trillion won, an operational profit of 7.03 trillion won, and a net profit of 5.75 trillion won, the company’s greatest quarterly performance to date.
Operating and net income topped past highs achieved during the semiconductor boom in Q3 2018; revenue beat the 16.42 trillion won record set in Q2 2024. The business credits higher sales of high-value goods, including enterprise solid-state drives and high bandwidth memory, which helped push an average DRAM and NAND selling price by over 10%.
Driven by continuous demand from data center consumers, HBM’s share of DRAM income climbed to 30% in Q3 and might approach 40% in Q4. Driven by breakthroughs in generative artificial intelligence and significant technology company investments, SK hynix projects that this trend will continue beyond 2025 as the AI industry expands.
In Q4 2024 the business intends to start distributing 12-layer HBM3E products and is also switching to next-generation HBM3E memory. SK hynix wants to maximize investment and production in the NAND market while expanding sales of high-capacity eSSD to fulfill increasing demand.
Kim Woohyun, Vice President and CFO of SK hynix, said the business keeps its eye on profitability and will keep changing its supply and product policies to meet the status of the market.
This article first appeared on GuruFocus.