Korea’s storage giant SK Hynix’s latest earnings report is directly crushing Nvidia.

SK Hynix’s revenue in the first quarter was $35.5 billion, and its net profit reached $25.4 billion. Its net profit margin has surged to 77%, comfortably surpassing Nvidia.
How outrageous is that profit margin? Put simply: if you sell $100 worth of storage chip, you keep a pure profit of $77. Across all manufacturing industries worldwide—and even in most other sectors—there are almost no other companies that can reach a profitability level like this.
What does a 77% net profit margin actually mean? In simple terms, sell $100 worth of storage chips, and you take home $77 in pure profit. Look at all manufacturing across the globe, or even most industries—it’s almost impossible to find a second company with profitability at this level.
Now, tech companies around the world are building AI data centers, and they need a high-end memory called HBM. SK Hynix got started first in this space, and it also does it best: it sells at high prices, yet others are still lining up to buy.
Just the price of memory chips increased by 60% in a single quarter, and the price of flash (storage) rose by 70%.
Ordinary memory used in phones and computers isn’t selling as well, but the chips that AI servers need are selling like crazy—making up for the money they earn less elsewhere.
There’s also one more thing: supply can’t meet demand.