SK Hynix, the world's second-largest memory chip manufacturer and leading supplier of high-bandwidth memory chips for Nvidia's graphics processors driving AI systems, reported a net profit of 1.917 trillion won ($1.39 billion) for the first quarter. After five consecutive quarters of losses, the company significantly exceeded analyst expectations. Compared to the previous year, which recorded a net loss of 2.585 trillion won, the result has significantly improved.

The revenues nearly doubled to a record 12.43 trillion won, while the operating profit reached 2.886 trillion won. These strong quarterly results are due to increased sales of HBM and other advanced chips for AI data servers.

In light of the ongoing boom in the field of Artificial Intelligence, which is increasing the demand for advanced and high-quality memory chips, SK Hynix plans to further expand its global production capacity. The company announced an additional investment of 14.56 billion dollars to expand its semiconductor production capacities in South Korea. About a quarter of this investment is intended for a new chip factory, which is expected to be completed by November 2025.

Moreover, SK Hynix Expands in the USA with Plans to Build a $3.87 Billion AI Chip Packaging Facility in Indiana and Collaborates with TSMC, the World's Largest Semiconductor Foundry, on the Development of New HBM4 Products.

The Positive Development of SK Hynix Stock, Which Has Risen by More Than 20% This Year, Reflects Growing Investor Interest Driven by AI Hype Leading the Semiconductor Industry Out of a Long Slump. The Company Expects the Entire Memory Chip Market to Embark on a Steady Growth Path Due to Rising Demand for AI Chips. With a Market Capitalization Nearly Doubled to Almost $100 Billion Last Year, SK Hynix Continues Its Strategic Expansions to Further Strengthen Its Market Leadership and Meet the Demands of a Dynamically Growing Market.