Alphabiz - SK hynix Posts Record-Breaking Q1 Results with 72% Operating Margin, Outpacing Nvidia and TSMC

SK hynix (Photo = SK hynix)

[Alpha Biz= Kim Jisun] SK hynix reported record-breaking first-quarter results, posting an operating profit of KRW 37.6 trillion, up 405.5% year-on-year, driven by strong demand from the AI boom.

Revenue rose 60.2% quarter-on-quarter to KRW 52.6 trillion, marking all-time highs for revenue, operating profit, and operating margin.

The standout figure was an operating margin of 72%, surpassing global semiconductor leaders such as NVIDIA (65%) and TSMC (58.1%). The result is particularly notable given the capital-intensive nature of the semiconductor industry.

The company attributed the strong performance to robust demand for high-value products, including high-bandwidth memory (HBM), high-capacity server DRAM modules, and enterprise SSDs, despite the typically slow seasonal quarter.

SK hynix also expects the current memory upcycle to be more prolonged than in the past, forecasting that demand for HBM will exceed supply for at least the next three years. The company noted that customers are prioritizing securing supply over pricing, supporting a favorable pricing environment going forward.

In line with this outlook, SK hynix plans to significantly expand capital investment this year to meet sustained demand driven by AI infrastructure growth.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)