SK Hynix's performance expectations for the fourth quarter of 2024 hit a new high.
On January 7, Bank of America analyst Simon Woo and his team released a report, expecting semiconductor giant SK Hynix to achieve a record operating profit of 8 trillion won in the fourth quarter of 2024—far exceeding SK Hynix's annual operating profit level during normal cycles. Bank of America also expects SK Hynix's overall DRAM operating profit margin in the fourth quarter to reach 51%.
Woo pointed out that SK Hynix's performance growth is mainly attributed to the following factors:
<blockquote>
<ol>
<li>Bank of America expects SK Hynix's high bandwidth memory (HBM) sales to account for 40% of fourth-quarter DRAM sales, with a profit margin exceeding 60%;</li>
<li>Global dynamic random-access memory (DRAM) prices continue to rise in the fourth quarter;</li>
<li>SK Hynix holds a leading position in enterprise-level solid-state drive solutions above 30TB.</li>
</ol>
</blockquote>
Looking ahead to 2025, Woo believes that SK Hynix's performance outlook remains optimistic for the following reasons:
<blockquote>
<ol>
<li>HBM prices are expected to continue rising, thanks to SK Hynix's dominant position in the 12-layer HBM market;</li>
<li>SK Hynix's LPDDR5 memory prices are expected to remain stable;</li>
<li>SK Hynix's operating profit in the first and second quarters of 2025 is expected to remain above 7 trillion won.</li>
</ol>
</blockquote>
On the other hand, SK Hynix's competitor and semiconductor giant Samsung Electronics has shown some struggles in recent quarters, with today's announced fourth-quarter results falling short of market expectations in both revenue and profit

SSNGY

Bank of America expects SK Hynix's overall DRAM operating profit margin in the fourth quarter to reach 51%, significantly higher than Samsung Electronics' 30%. Bank of America also anticipates that SK Hynix's high bandwidth memory (HBM) sales will account for 40% of DRAM sales in the fourth quarter, with a profit margin exceeding 60%

- SK Hynix is expected to achieve record operating profit of 8 trillion won in Q4 2024, significantly exceeding normal annual levels.  
- The growth is attributed to high bandwidth memory (HBM) sales, rising DRAM prices, and a leading position in enterprise SSD solutions.  
- Looking ahead to 2025, SK Hynix's outlook remains positive, with anticipated stable LPDDR5 prices and continued high operating profits above 7 trillion won in Q1 and Q2.

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