South Korea’s SK Hynix, one of the world’s largest memory chipmakers, on Thursday posted record quarterly profit, boosted by strong demand for its high bandwidth memory (HBM) used in generative AI.

Here are SK Hynix’s third-quarter results compared with LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate:

• Revenue: 17.57 trillion won ($12.7 billion) vs. 18.11 trillion won
• Operating profit: 7.03 trillion won ($5.08 billion) vs. 6.8 trillion won

Operating profit in the July-September quarter hit its highest level, rebounding from a loss of 1.8 trillion won during the same period last year.

Quarterly revenue grew about 94% year-on-year from 9.1 trillion won.

The South Korean chip giant is a key supplier to Nvidia and has benefitted from a boom in artificial intelligence servers.

SK Hynix said in its earnings release Thursday that demand for AI memory, particularly from data center customers, continued to be strong in the third quarter, allowing it to expand sales of premium products such as HBM and eSSD, a core component of AI chips.

HBM is a type of dynamic random access memory, known as DRAM, where chips are vertically stacked to save space and reduce power consumption. SK Hynix, Micron Technology and Samsung Electronics are the three main manufacturers of HBM chips.

Sales of HBM products were up more than 70% from the previous quarter and more than three times from the same period last year, and the company expects continued growth.

“While the demand of memory for AI servers such as HBM and eSSD has grown noticeably this year, the company predicts that this trend will continue next year,” the firm said in a press release.

The company said last month that it has started mass production of its latest version of HBM chips and aims for delivery by the end of the year.

SK Hynix was trading down a slight 0.41% on Thursday.

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