SK Hynix reported a remarkable 35% increase in revenue and a 69% rise in operating profit for the second quarter, driven primarily by strong demand for high bandwidth memory (HBM) used in AI applications. The company anticipates doubling its HBM sales for the full year compared to 2024, with HBM contributing 77% to its second-quarter revenue. This growth is attributed to aggressive investments in AI by major tech firms, which are expected to sustain demand in the AI server market despite macroeconomic uncertainties.

The company has established itself as a leader in the HBM market, surpassing Samsung in the global DRAM sector for the first time. SK Hynix's competitive edge is bolstered by its partnerships with key clients like Nvidia. However, it faces increasing competition from Samsung and Micron, who are also investing heavily in HBM technology. The company plans to ramp up capital expenditures to support its HBM customers and is preparing for the mass production of its next-generation memory, HBM4, by the end of the year.