Memory is once again at the center of the chip industry, and SK hynix is currently one of the key indicators of that cycle. After closing a record-breaking first quarter, the South Korean manufacturer faces a second quarter that could be even better if two factors continue to work in its favor: rising prices in DRAM and NAND, and the increasing value of products linked to Artificial Intelligence infrastructure.
This is not yet a confirmed result, but a forecast based on market trends and the company’s own guidance. Still, the context is strong enough that some Korean industry press are already talking about a potential new boost in profitability this quarter, after SK hynix posted its best start to a year in history between January and March.
An extraordinary first quarter
The data published by SK hynix for the first quarter of 2026 is hard to ignore. The company reported revenues of 52.5763 trillion won and an operating profit of 37.6103 trillion won, with an operating margin of 72%. Net profit reached 40.3459 trillion won, pushing the net margin to 77%. The company itself described this quarter as a new all-time high, marking the first time surpassing 50 trillion won in sales in a single quarter.
The speed of the jump is also remarkable. According to figures released on April 23, revenue grew by a 198% year-over-year and by 60% compared to the previous quarter, while operating profit soared by 405% from the same period last year and by 96% compared to Q4 2025. This indicates not just a good quarter, but an exceptional acceleration even for a company accustomed to robust cycles of memory growth.
What’s most striking is that these results did not come from a large volume increase in bits. Analysis from Korean industry specialists points out that the bit growth for the quarter was limited: DRAM remained almost flat compared to the previous quarter, and NAND declined around 10%. Still, profitability surged due to a much more influential factor: price. The ASP for DRAM and NAND increased around a mid-60% and mid-70% respectively.
This detail helps explain why the current memory cycle looks less like a simple rebound and more like a phase of strong price-setting power. Demand for high-value server memory, driven by AI infrastructure deployment, is increasing the share of more profitable products and tightening supply in key segments. According to ZDNet Korea, even excluding HBM, where price volatility is lower, commodity DRAM has seen ASP increases close to 100%.
The second quarter could be even better
The big question now is whether this level can be maintained. Everything points to yes, at least in the short term. Korean media forecasts suggest SK hynix expects a single-digit high growth in DRAM volume and a mid-single-digit increase in NAND for Q2. In other words, two positive drivers could coincide: more shipments and still rising prices.
Sector estimates in Korea also point to sequential ASP increases in Q2: around 20% for DRAM and 30% for NAND. If this scenario materializes, SK hynix could once again improve its margins in a business where volume, product mix, and price combine to multiply the bottom line.
Another relevant point is that the company is not only selling more expensive memory but doing so at a time when AI is making advanced memory a strategic component of the entire tech chain. SK hynix has long benefited from its position in HBM, crucial for AI accelerators, helping the market view memory less as a cyclical product and more as an essential part of the new spending on data centers and model training.
Profitability that’s hard to see in manufacturing
The 72% operating margin is among the most notable figures, as it operates at levels uncommon for an industrial company. Korean industry media have ranked it among the highest in the global manufacturing sector and above other major recent industry players, reinforcing the idea that SK hynix is experiencing an extraordinary moment within the current memory supercycle.
Nonetheless, caution is advisable. These kinds of margins typically are not sustainable indefinitely in semiconductors, especially in memory, where supply and demand cycles can shift rapidly. However, it would also be a mistake to interpret what’s happening as mere anomaly. The market is rewarding the combination of scarcity in high-value products, execution capacity, and direct exposure to AI expansion. Today, few companies are as well-positioned in that intersection as SK hynix.
Therefore, the real news is not just that they posted a record quarter but that the market is already seriously considering the possibility of further improvements next quarter. If the tailwinds of price and product mix hold through June, SK hynix could close Q2 with another historic profitability benchmark and solidify its position as one of the main winners of the current AI memory boom.
via: ZDnet