SK Hynix Surges on AI Chip Demand, Outperforms Samsung in Q2

SK Hynix posted record quarterly earnings as demand for its high-bandwidth memory chips, critical for AI systems, continues to climb. The South Korean semiconductor giant reported an operating profit of ₩9.2 trillion ($6.7 billion), a 68% year-over-year surge, with revenue jumping 35% to ₩22.2 trillion ($16.1 billion). Analysts had anticipated ₩20.6 trillion.

The company has now outperformed rival Samsung Electronics for two consecutive quarters, cementing its lead as Nvidia's primary supplier of HBM chips. SK Hynix shares gained over 2% following the earnings release, extending a rally that has tripled its stock price since early 2023. Bank of America projects the global HBM market will grow from $35.7 billion this year to $57.5 billion by 2027.

Samsung, meanwhile, faces headwinds—its preliminary Q2 earnings suggest a 56% profit decline, partly due to challenges meeting Nvidia's AI chip specifications. SK Hynix highlighted sovereign AI initiatives as a key growth driver, with governments worldwide investing in domestic AI infrastructure.