SK Hynix Q1 Revenue Hits 52.6T Won, Operating Margin Surges to 72%
SK Hynix reported Q1 revenues of 52.58 trillion won and record operating profit of 37.61 trillion won, with margins surging to 72% as AI-driven memory demand soared. Despite net profit jumping fivefold to 40.35 trillion won, the stock declined on investor doubts over the sustainability of the AI memory boom.
1. Q1 Financial Highlights
SK Hynix posted Q1 revenues of 52.58 trillion won and operating profit of 37.61 trillion won, marking an operating margin of 72%; net profit reached 40.35 trillion won, up nearly fivefold year-on-year. This is the first quarter with revenue above 50 trillion won and record-high profitability.
2. AI Memory Demand Surge
Robust demand for AI-driven memory chips and high value-added product launches underpinned the performance, reflecting strong uptake of advanced DRAM and NAND solutions in data center and generative AI applications.
3. Stock Market Reaction
Despite stellar results, the stock declined as investors questioned whether the rapid growth in AI memory markets can be sustained and whether margins will hold if pricing pressures emerge.
4. Future Capacity and Supply Outlook
Ongoing industry-wide capacity constraints suggest chip shortages could persist into 2030; the company plans targeted investments to expand supply for high-end memory segments aligned with projected AI workload growth.