SK hynix is poised to make significant gains in operating profit for 2025, potentially outpacing Samsung Electronics in this metric. Analysts predict that increased sales of high-margin semiconductor chips could propel the world’s No. 2 memory chip maker’s profitability above that of Samsung’s semiconductor division and even its mobile business combined.
According to projections from the securities industry on Sunday, SK hynix’s 2025 operating profit is estimated to range between 20 trillion and 45.4 trillion won, or about $14.2 billion to $32.3 billion. Samsung Electronics’ operating profit estimates stand at 27.9 trillion to 49 trillion won. While no forecast has yet placed SK hynix ahead of Samsung Electronics overall, the recovery of legacy semiconductor chip prices remains slow. If high bandwidth memory (HBM) chip prices exceed expectations, a reversal could occur.
HBM chips, known for their high margins, are a key driver of SK hynix’s profitability. The company’s operating profit margin, expected to be 35 percent in 2024, could rise to as much as 46.8 percent in 2025. DAOL Investment & Securities projects SK hynix’s 2025 revenue at 97 trillion won, up 45 percent increase from 2024, with operating profit reaching 45.4 trillion won.
Ko Young-min, an analyst at DAOL Investment & Securities, highlighted SK hynix’s competitive advantage in HBM4 technology, which is expected to maintain its lead over latecomers. “As AI demand continues to grow, SK hynix will solidify its position as a leading beneficiary of memory demand. The suppressed stock price is likely to rebound strongly in an improving market,” he noted.
SK hynix’s stock price, which neared 200,000 won in late October 2024, fell to 176,700 won as of November 22nd, 2024.
However, challenges in the NAND flash market could temper the company’s outlook. While SK hynix’s AI-driven enterprise solid-state drives (eSSDs) contribute to stable performance, the overall NAND market remains sluggish. Fellow stock brokerage firm IM Securities estimates SK hynix’s 2025 operating profit at 20 trillion won, citing difficulties in fully offsetting market headwinds. NAND flash average selling prices are expected to decline by 8 percent in the first quarter of next year, potentially pushing the NAND division, which has maintained double-digit profit margins this year, back into the red by the second quarter of 2025, said IM Securities analyst Song Myung-seob.
Kiwoom Securities analyst Park Yu-ak warned of intensified competition with Chinese firms such as CXMT and JHICC, which could further depress prices for general-purpose memory products. “From the fourth quarter of 2024, selling prices may fall below initial expectations,” he said.
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