UPDATE 1-SK Hynix Q1 profit beats expectations on AI boom

Reuters04-25

(Adds background, revenue in paragraphs 4-5)

SEOUL, April 25 (Reuters) - South Korea's SK Hynix

on Thursday posted its highest profit in nearly two years, as explosive sales of its advanced DRAM chips such as high bandwidth memory $(HBM)$ used in generative AI chipsets drove a sharp performance improvement.

The world's second-biggest memory chipmaker and Nvidia

supplier reported a 2.89 trillion won ($2.1 billion) operating profit for the January-March quarter versus a loss of 3.4 trillion won a year earlier.

It beat expectations for a 1.88 trillion won operating profit LSEG SmartEstimate which is weighted toward analysts who are more consistently accurate.

The result marks its second-highest profit for the January-March quarter ever, and a quick turnaround from heavy losses it incurred for a year until the third quarter of 2023 when the global memory chip sector went through its worst downturn in decades, hit by a slump in post-pandemic demand for tech devices.

Revenue rose 114% on-year to 12.4 trillion won.

($1 = 1,374.6200 won)

(Reporting by Joyce Lee and Heekyong Yang; Editing by Himani Sarkar and Kim Coghill)

((joyce.lee@tr.com;))

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