Investing.com-- SK Hynix Inc (KS:000660) clocked a stronger-than-expected profit in the second quarter, boosted chiefly by higher revenues as the rapidly growing artificial intelligence industry ramped up demand for advanced memory chips.
The firm posted an operating profit of 5.47 trillion won ($4 billion) in the three months to June 30, compared to a loss of 2.88 trillion won last year. The figure was higher than Bloomberg estimates of 5.24 trillion won.
This came on the back of revenue reaching a record high of 16.42 trillion won in the quarter, more than doubling from the same period last year.
Earnings were boosted chiefly by increased demand for memory chips from the AI industry, specifically high-bandwith memory chips. SK Hynix is the only memory chip maker to mass-produce the most advanced HBM3E chips, and ranks AI darling NVIDIA Corporation (NASDAQ:NVDA) among its biggest clients.
The firm said it expects memory demand from AI will continue to increase in the second half of the year, and that demand from the personal computing and mobile industry will also improve with the release of more products supporting on-device AI.
The AI boom helped SK Hynix and the broader chipmaking industry to see a major recovery in demand over the past year, largely offsetting laggard device sales and softening tech investment.