1. SK hynix Q2 Earnings: Growth and Concerns
SK hynix reported Q2 2025 revenue of KRW 22.23 trillion and operating profit of KRW 9.21 trillion, representing increases of 26% and 23.8% respectively compared to Q1. However, net profit declined by 13.7% to KRW 6.99 trillion. This mixed performance is attributed to strong DRAM sales offset by weaknesses in the NAND segment and currency fluctuations.
2. Key Drivers of Performance
- DRAM Growth: The explosive growth of the AI server market fueled demand for high-value DRAM (HBM3E, DDR5), driving revenue growth.
- NAND Weakness: Continued price declines and declining profitability in the NAND segment significantly impacted net profit.
- China Market Recovery: The recovery of the Chinese consumer market positively contributed to memory demand.
- Currency and Raw Material Prices: Fluctuations in exchange rates and rising raw material prices also influenced the results.
3. Investment Strategy: Navigating Uncertainty
In the short term, the continued growth of the DRAM segment and the recovery of NAND profitability are key factors to watch. Long-term prospects are positive given the growth of the AI market, but investors should be mindful of memory market volatility and macroeconomic uncertainty. Focus on the company’s development of next-generation memory technology and ESG management strategies.
4. Key Investment Takeaways
- DRAM market growth trajectory
- NAND segment profitability recovery strategy
- AI market growth and competitive landscape
- Macroeconomic environment changes