SK Hynix overtakes Samsung in annual profit for the first time as AI reshapes rivalry

In a historic shift within the South Korean tech landscape, SK Hynix has outperformed its rival, Samsung Electronics, in operating profit for the very first time. This milestone occurred in 2025, driven by SK Hynix's stronghold in high-bandwidth memory (HBM) that powers artificial intelligence (AI) chips. The rivalry between these two memory giants came to a head this week as SK Hynix released its earnings report on Wednesday, followed by Samsung's results on Thursday morning. SK Hynix achieved a remarkable operating profit of 47.2 trillion won, eclipsing Samsung's 43.6 trillion won. This performance highlights SK Hynix's rise since its acquisition by SK Telecom for approximately $3 billion in 2012. While SK Hynix has concentrated solely on memory chips, Samsung's portfolio spans various sectors, including consumer electronics and contract chip production. In its memory segment, Samsung reported operating profits of around 24.9 trillion won for the year 2025. The success of SK Hynix can largely be attributed to its dominant position in the HBM market, which is crucial for AI processors and servers, such as those manufactured by Nvidia. "SK Hynix is undoubtedly an 'AI Winner' in Asia," stated MS Hwang, research director at Counterpoint Research. He emphasized that the company's excellence in the quality and supply of HBMs and other AI server chips has been vital during the ongoing AI infrastructure expansion. Despite SK Hynix's leadership, the competitive landscape is intensifying. Although SK Hynix has secured a significant share of Nvidia's memory contracts, competitors like Samsung and Micron are making notable advancements. Samsung is ramping up its HBM sales and is poised to launch HBM4, the latest generation of HBM technology, this year. Analyst Ray Wang from SemiAnalysis remarked, "We anticipate a significant turnaround for Samsung with HBM4, moving beyond last year's quality challenges." Nevertheless, experts believe SK Hynix will maintain a substantial market share in HBM4 and continue to lead the sector. Wang concluded that the competition is primarily between SK Hynix and Samsung, with both companies becoming increasingly competitive in the HBM4 space compared to Micron.