SK Hynix, the South Korean memory-chip maker, is expected to report a net loss of 2.889 trillion won ($2.26 billion) for the second quarter of this year, according to a FactSet-compiled consensus forecast. This would be a larger loss compared to the previous quarter’s 2.583 trillion won and a significant decrease compared to the 2.876 trillion won profit reported a year ago.
The consensus forecast also indicates that SK Hynix’s revenue is projected to fall by 55% year-on-year, reaching 6.242 trillion won. Additionally, an operating loss of 3.025 trillion won is expected for the quarter.
Key Points to Watch
Investors are closely monitoring whether SK Hynix will register a third consecutive quarterly net loss, as the company continues to grapple with the global chip industry downturn. Since the fourth quarter of 2022, SK Hynix has been operating in the red.
Additionally, any signs of a recovery in semiconductor demand and average selling prices will be of great interest to investors. Initially, SK Hynix anticipated that the second half of 2023 would show improvements in memory-chip market conditions after chip makers reduced output to address the supply glut.
Moreover, attention will be paid to the impact of the ongoing artificial intelligence (AI) frenzy on the demand for advanced memory chips. As a key supplier of high bandwidth memory chips to Nvidia, which creates graphics processing units powering AI applications, SK Hynix stands to benefit from increased demand in this area.