SK Hynix’s Profit Surge Falls Short as ‘Supercycle’ Debate Rages

SK Hynix Inc. reported a five-fold jump in quarterly profit that yet failed to impress investors questioning how long booming sales for AI memory chips can last.

Demand for high-bandwidth memory — critical for training and running artificial intelligence models alongside Nvidia Corp. accelerators — will exceed supply for the next three years, Chief Financial Officer Kim Woo-hyun said on an earnings call. He said capital spending will grow “significantly” this year, and dismissed concerns of any oversupply.