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Investing.com-- SK Hynix Inc (KS:000660) on Wednesday clocked a record third-quarter profit as demand for its advanced memory chips remained underpinned by rapidly increasing investment in artificial intelligence infrastructure.
The company, which is also a major supplier to NVIDIA Corporation (NASDAQ:NVDA), posted an operating profit of 11.383 trillion won ($8 billion) for the September quarter, up 62% from last year.
The figure was slightly above Bloomberg estimates of 11.23 trillion won.
Revenue jumped 39% to 24.449 trillion won.
The company largely touted AI-fueled demand as the biggest driver of its earnings, especially amid more sales of “high value-added products” such as high-bandwidth memory (HBM) and DDR5 memory for servers.
SK Hynix said it plans to fasttrack the migration of its advanced memory processes in the face of increasing demand from the AI industry.
It also said that it had completed discussions with customers over its HBM supply for next year, and has secured full customer demand for all its DRAM and NAND production next year.
SK Hynix also plans to begin shipments of its advanced HBM4 products in the fourth quarter, after development was completed and mass production began in September.
SK Hynix shares hit a series of record highs in the run-up to its earnings, with expectations high amid a flurry of AI infrastructure deals and buildouts. The company is the biggest supplier of advanced memory to the AI industry, and has benefited greatly from oversized demand over the past two years.
Earlier in October, the company partnered with OpenAI to supply memory chips to and build data centers with the AI startup.
Memory chips are a key component of AI processors, given the large processing and data reading requirements of AI programs.