The South Korean chip giant reported a 12 percent year-on-year increase in fourth-quarter revenue to 19.77 trillion won ($13.8 billion), with operating profit rising 15 percent to 8.08 trillion won, surpassing market expectations.
For the full year, the firm's revenue doubled to 66.19 trillion won, with operating profit hitting a historic high of 23.47 trillion won. The remarkable performance was largely driven by the company’s strategic focus on high-bandwidth memory (HBM) chips and enterprise solid-state drives (eSSDs), key components in AI infrastructure.
“SK hynix has demonstrated its ability to maintain profitability by concentrating on high-value products, outpacing competitors,” said Ryu Young-ho, a senior analyst at NH Investment & Securities.
This strong performance has prompted major securities firms, including NH Investment & Securities and Hana Securities, to raise their target prices for SK hynix shares.
Kim Dong-won, managing director at KB Securities, predicts that over half of SK hynix’s DRAM operating profit this year will come from HBM chips, underscoring a significant shift in its revenue structure. Analysts project HBM sales could reach 29.6 trillion won in 2025, potentially comprising 48 percent of the company’s DRAM revenue.
Despite a potential seasonal slowdown in the first quarter, industry insiders anticipate a robust recovery starting in the second quarter, particularly in the HBM market, which is expected to more than double in size this year.
SK hynix is forecast to maintain its market leadership in HBM3E 12-layer chips, potentially driving DRAM operating profits to a record high of 31 trillion won in 2025.
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