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Investing.com-- Nvidia memory chip supplier SK Hynix Inc (KS:000660) clocked a record profit for the second quarter on robust demand from the artificial intelligence industry, which it expects to remain strong in the coming quarters.
SK Hynix’s operating profit surged 69% to a record high of 9.2 trillion won ($6.69 billion), which was also higher than Reuters estimates of 9 trillion won. Revenue rose 35% to 22.2 trillion won.
The company said that AI-fueled demand continued to boost its earnings, while also forecasting a “low likelihood of sharp decline in demand” in the second half of the year.
The chipmaker recently overtook rival Samsung Electronics (KS:005930) as the world’s biggest memory chip maker, thanks largely to its leadership in producing high-bandwith memory chips, which are a key component of AI processors.
SK Hynix’s HBM chips are incorporated into Nvidia’s chipsets and are crucial to the large computing and memory requirements of AI models. SK Hynix’s quarterly profit was also well above that forecast by rival Samsung, which had earlier in July warned of a bigger-than-expected 56% slide in its second-quarter earnings.
SK Hynix said it will increase its capital expenditure in the face of more customer demand, which it sees remaining strong in the remainder of 2025 and 2026.
Still, the company faces potential headwinds from U.S. tariffs on semiconductor imports, which President Donald Trump has threatened to impose.
Last week, SK Hynix was also downgraded to a Neutral rating by Goldman Sachs, which cited potential headwinds from increased HBM competition and lower prices for the technology in 2026.