SK Hynix Surges to 41% Operating Margin in Q2; Puts Full Force Behind HBM4 Pricing Defense

[Korea Financial Times, Gwak Horyung] SK hynix (CEO Gwak Noh-Jung) achieved a quarterly operating profit above KRW 9 trillion, driven by high-bandwidth memory (HBM).

On July 24, SK hynix announced that it achieved revenue of KRW 22.232 trillion, operating profit of KRW 9.2129 trillion, and net income of KRW 6.9962 trillion in the second quarter of 2025. Both revenue and operating profit surpassed the company’s previous records set in the fourth quarter of 2024, and the operating margin reached 41%.

Compared to market expectations, operating profit met the heightened outlook after Micron’s results, while revenue exceeded market estimates by about 7%. SK hynix explained the revenue outperformance as being due to uncertainty over tariffs. Major customers purchasing semiconductors had initially planned to maintain more conservative inventory levels in response to concerns about weakening demand in the second half, but they changed their tactics to maintain adequate inventory in consideration of tariff risks.

This strong performance was again led by HBM, a memory semiconductor for artificial intelligence (AI). SK hynix stated, “As global big tech firms are actively investing in AI, demand is continuing to grow,” adding that it will maintain its plan to double year-on-year sales in the HBM sector.

SK hynix’s financial soundness has become even more solid as the company continues to post operating margins above 40%. At the end of the second quarter, cash and cash equivalents totaled KRW 16.96 trillion, marking an 75% increase from KRW 9.69 trillion a year earlier. During the same period, the net debt ratio dropped by 20 percentage points to 6%.



Market attention is now focused on next year’s outlook. U.S. investment bank Goldman Sachs downgraded its rating on SK hynix last week from “Buy” to “Neutral,” citing concerns that HBM prices could decline next year.

The next-generation HBM4, which SK hynix is set to launch in full scale in 2025, may face margin pressure. Competitive order bidding with Samsung Electronics and NVIDIA, as well as joint development efforts with TSMC, are expected to weigh on profitability.

At the earnings briefing, an SK hynix official said, “For HBM4, we will adopt a pricing policy that reflects increased costs. We will strive to sustain profitability while promoting further growth in the AI market.”

Gwak Horyung (horr@fntimes.com)