SK Hynix profit surpasses Samsung, but shares dip on lower memory chip demand

Before the result, SK Hynix shares had jumped about 30 per cent so far this year on bullish sentiment driven by its business discussions with Nvidia, outperforming Samsung, whose shares rose 2 per cent over the same period.

“Uncertainties exist for the memory chip market this year as trade protectionism grows and geopolitical risks deepen, while PC and smartphone companies adjust inventories,” SK Hynix chief financial officer Kim Woo-hyun told analysts on an earnings call.

The company said supply will remain tight for high-performance chips as a result of rising demand, but demand declines will accelerate for legacy products.

Lee Min-hee, an analyst at BNK Investment & Securities, said while fourth-quarter results were strong, SK Hynix’s forecast for first-quarter chip shipments was weaker than expected and disappointed investors.