Earlier today, Hynix reported Q1 revenue of $5.85 billion which was 6% up y-o-y.

However its operating profit of $649 million was 41% down y-o-y.

“There are a lot of uncertainties about the outlook for supply and prices for servers in the second half,” said Hynix CFO Cha Jin-seok.

A slump in smartphone memory demand been mitigated by a rise in demand for server and PC memory as more people work from home, boosting demand for online education, video streaming and e-commerce.

“The biggest factor to our demand forecast is the stabilisation of COVID-19 and the recovery timing of global economic activity. If the economic recession is prolonged, we can’t rule out that even memory demand for servers could slow down,” said Cha.

Hynix expects DRAM shipments to stay flat in Q2.