SK Hynix, a leading memory chipmaker in South Korea, reported an operating profit of 7.03 trillion won (US$5.08 billion) for the third quarter of this year.

This figure exceeded analyst expectations of 6.8 trillion won. It also marked a recovery from a 1.8 trillion won loss in the same quarter last year.

The profit increase is linked to a strong demand for high-bandwidth memory, which is used in AI applications.

SK Hynix’s revenue reached 17.57 trillion won (US$12.7 billion), nearly doubling from a year ago. This was slightly below the LSEG SmartEstimate of 18.11 trillion won.