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SK hynix wobbles on market uncertainty, despite record 2024 earnings

Jan 23, 2025 - theregister.com
SK hynix reported record earnings for 2024, with sales reaching ₩66.19 trillion ($46 billion) and an operating profit of ₩23.4673 trillion ($16 billion), driven by strong demand for AI memory and High Bandwidth Memory (HBM) technology. Despite surpassing Samsung Electronics in quarterly operating profit, SK hynix's shares fell due to concerns over potential weaker demand for memory chips in PCs and smartphones, increased competition from Chinese firms, and market uncertainties fueled by trade protectionism and geopolitical tensions.

The company remains optimistic about the continued demand for HBM and server DRAM for high-performance computing, planning to expand HBM3E supply and develop HBM4. However, SK hynix's conservative capital expenditure plans for 2025 have raised concerns about a potential slowdown in demand. The broader market is also affected by geopolitical issues, including the US-China tech cold war and potential US tariffs that could impact costs for American consumers.

Key takeaways:

  • SK hynix's revenue doubled in 2024, reaching ₩66.19 trillion, with significant growth driven by AI memory demand and HBM technology.
  • Despite strong earnings, SK hynix shares fell due to warnings of weaker demand for memory chips in PCs and smartphones, and rising competition from Chinese firms.
  • Market uncertainty is heightened by geopolitical tensions and potential US tariffs, impacting global trade and technology sectors.
  • SK hynix plans to expand HBM3E supply and develop HBM4, but its conservative capital expenditure plan for 2025 raises concerns about future demand.
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