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SK hynix bets on HBM ramp as AI memory demand lifts margins
The company raised operating profit in Q2, and it plans to double chip wafer capacity within five years.
SK hynix expects its next wave of high-bandwidth memory products to ramp in the back half of the year, despite reporting Q2 revenue that missed consensus estimates. MarketBeat Ratings said analyst coverage remains constructive, citing ongoing AI linked demand for DRAM and HBM, along with margin strength driven by capacity utilization and pricing power.
The outlet pointed to year over year top line growth supported by AI, with DRAM and HBM pricing compounding volume gains, while end markets like PCs and smartphones were described as less robust due to supply constraints. It added that weaknesses in the quarter were tied to timing and product mix, including the transition to next gen HBM.
MarketBeat Ratings also highlighted margin performance, citing a 557.0% increase in operating profit and guidance that points to broadening demand tied to high performance computing and inference. It noted that analysts have broadly lifted targets since the last report, with U.S.-listed coverage implying as much as 150.0% upside.
Beyond near term ramps, SK hynix is aiming to double chip wafer capacity within the next five years, supported in part by capital raised through its U.S. listing. The story further said an NVIDIA deal is in play to scale capacity across multiple production clusters for AI infrastructure, with the arrangement intended to secure years of future memory supply.
SK hynix missed revenue expectations, but MarketBeat Ratings framed the bigger picture as improving premium dynamics for its U.S.-listed ADRs and continued confidence in HBM demand. It described a Moderate Buy to Strong Buy consensus across tracked reports, despite the Q2 miss.