---
title: "Fourth quarter profits are expected to hit a record high, Morgan Stanley: SK Hynix's stock price rise makes sense"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/224294479.md"
description: "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%"
datetime: "2025-01-08T09:03:24.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/224294479.md)
  - [en](https://longbridge.com/en/news/224294479.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/224294479.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/224294479.md) | [繁體中文](https://longbridge.com/zh-HK/news/224294479.md)


# Fourth quarter profits are expected to hit a record high, Morgan Stanley: SK Hynix's stock price rise makes sense

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:

> 1.  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%;
> 2.  Global dynamic random-access memory (DRAM) prices continue to rise in the fourth quarter;
> 3.  SK Hynix holds a leading position in enterprise-level solid-state drive solutions above 30TB.

Looking ahead to 2025, Woo believes that SK Hynix's performance outlook remains optimistic for the following reasons:

> 1.  HBM prices are expected to continue rising, thanks to SK Hynix's dominant position in the 12-layer HBM market;
> 2.  SK Hynix's LPDDR5 memory prices are expected to remain stable;
> 3.  SK Hynix's operating profit in the first and second quarters of 2025 is expected to remain above 7 trillion won.

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

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