SK Hynix Surpasses Intel in Chip Revenue Amid AI Memory Boom

SK Hynix Surges Past Intel in Chip Market Rankings, Driven by AI Memory Boom

Seoul, South Korea – SK Hynix has achieved a significant milestone, surpassing Intel in global chip supplier rankings following a robust revenue performance in 2025. The South Korean memory giant reported $67.2 billion in revenue for the year, marking a substantial 42.3% increase from the previous year. In contrast, Intel’s revenue for the same period declined by 3.7% to $48.5 billion.

Memory Dominance Fuels SK Hynix’s Ascent

This shift in financial performance has propelled SK Hynix from fourth to third place among the world’s leading chip suppliers, with Intel now positioned behind it. The primary driver of SK Hynix’s remarkable growth is its dominance in high-bandwidth memory (HBM), a critical component for artificial intelligence processors. HBM acts as a high-speed data conduit, essential for enabling AI accelerators to operate at peak efficiency. Without it, these powerful processors would face significant delays.

SK Hynix currently commands approximately 50% of the global HBM market. While its share has seen a slight decrease as Samsung gains traction, SK Hynix remains the principal HBM supplier to Nvidia, a key player in the AI hardware landscape.

Profitability Soars on HBM and DRAM Strength

The profitability of SK Hynix has been particularly striking. In the second quarter of 2026, the company posted operating margins of around 76%, a figure largely attributed to the strong performance of its HBM and DRAM products. This indicates that nearly three-quarters of every revenue dollar generated by SK Hynix flowed through to operating profit, a margin more akin to software companies than traditional hardware manufacturers.

Broader Market Trends Favor Memory Makers

The overall semiconductor market in 2025 saw the top 10 chip suppliers capture two-thirds of a record-breaking market. Memory manufacturers, including Samsung, SK Hynix, and Micron, alongside Nvidia, were the primary engines of this expansion.

Intel stood as a notable exception, being the sole decliner among the top 10 suppliers in a year that saw the overall market reach new heights. The company has also been reporting net losses, a stark contrast to SK Hynix’s impressive profitability.

Intel Pursues Strategic Initiatives

In an effort to bolster its financial position, Intel completed an upsized $20 billion common stock offering in August 2026. The offering involved the sale of 210.5 million shares at $95 each, with the proceeds designated for general corporate purposes, including capital expenditures.

Further signaling its commitment to innovation, Intel announced a technical collaboration with Applied Materials on October 6, 2026. This partnership will involve joint research and development efforts at Applied Materials’ EPIC Center and Intel’s Oregon R&D site. The collaboration aims to advance next-generation transistors, interconnect scaling, and advanced packaging solutions specifically designed for AI workloads.