SK hynix records stellar 94% YoY revenue boost in Q3'24 — Attributes record profits to soaring demand of memory in AI servers

SK Hynix
(Image credit: SK Hynix)

SK hynix has just seen one of its best financial quarters in history, marking a staggering 94% growth in revenue compared to last year. SK hynix credits the ever-rising demand for memory in the AI market as it leaps over its competitors with the development of its HBM3E offerings. The company's net income, which was in the red throughout 2023 is steadily rising this year with a 40% spike quarter over quarter.

Being one of the key memory suppliers to Nvidia and AMD has been crucial for all memory makers due to the potential growth in the AI industry. Much of these profits are likely the result of SK hynix leapfrogging Samsung and Micron in securing HBM3E contracts for Nvidia's Blackwell GPUs. Similarly, just last month, SK hynix began mass production of 12-Hi HBM3E for Blackwell Ultra (B300) products and AMD's MI325X series. SK hynix says that the catalyst behind its highest-ever revenue since inception is the expansion of its HBM and eSSD offerings and an overall stronger foothold in the memory market. Quarterly, HBM sales by SK hynix increased by 70% and a whopping 330% when compared to last year.

Going over the numbers, the third quarter covers the months of July, August, and September. SK hynix reports a quarterly revenue of 17,573 Trillion won ($12.6 Billion) - which is 94% higher than last year and a nice 7% uplift against last quarter. The net income is also up by 40% at $4.13 Billion, quarter over quarter, and a strong turnaround for the giant as it lost roughly $1.5 Billion during the same timeframe last year.

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MetricQ3'24 Q2'24 Q3'23
Revenue$12.6 Billion$11.8 Billion$6.5 Billion
Operating Profit$5.05 Billion$3.93 Billion-$1.28 Billion
Operating Margin40%33%-20%
Net Income$4.13 Billion$2.96 Billion-$1.57 Billion

SK hynix predicts more sales not just from data centers next year but from general mainstream PC and mobile markets owing to the launch of "optimized AI memories". Since mass production of HBM3E is underway, HBM sales are expected to account for 40% of SK hynix's total DRAM revenue, up from 30% this quarter.

In hopes of powering Nvidia's Rubin chips next year, SK hynix's HBM4 memory has been taped out with mass production slated for the second half of 2025 - so these results should not be a one-time occurrence and will only improve further next year.

Hassam Nasir
Contributing Writer

Hassam Nasir is a die-hard hardware enthusiast with years of experience as a tech editor and writer, focusing on detailed CPU comparisons and general hardware news. When he’s not working, you’ll find him bending tubes for his ever-evolving custom water-loop gaming rig or benchmarking the latest CPUs and GPUs just for fun.