SK Hynix Reports Record Profits Amid AI Demand Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
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Should l Buy NVDA?
Source: CNBC
- Revenue and Profit Growth: SK Hynix reported Q1 revenue of 52.58 trillion won ($35.55 billion), missing the forecast of 53.55 trillion won but nearly tripling year-over-year, indicating robust market demand and the company's leadership in the AI sector.
- Record Operating Profit: The company achieved an operating profit of 37.61 trillion won, growing fivefold year-over-year, with an operating margin reaching an all-time high of 72%, reflecting its competitive edge in the high-bandwidth memory (HBM) market.
- Market Share and Competitive Landscape: SK Hynix holds a 57% share in the HBM market, maintaining its position as a key supplier for AI data centers despite Samsung reclaiming the top spot in DRAM revenue, showcasing its technological advantages.
- Future Challenges and Outlook: While memory prices may slow in the second half of the year, SK Hynix's profits are expected to continue rising due to strong AI inference demand; however, ongoing conflicts in the Middle East could disrupt essential semiconductor manufacturing supplies, warranting close monitoring.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 199.880
Low
200.00
Averages
264.97
High
352.00
Current: 199.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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