(Bloomberg) — SK Hynix Inc. (000660.KS) warned of increased volatility in the second half of 2025 despite resilient demand for AI memory chips from big tech providers, reflecting the uncertainty surrounding US tariffs.

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The Korean company reported a better-than-projected 158% jump in March-quarter operating income, propelled in part by stockpiling ahead of Trump’s tariffs. SK Hynix stuck with a forecast for a doubling in demand for the high-bandwidth memory essential to Nvidia Corp.’s (NVDA) AI accelerators, which in turn drive giant data centers built by the likes of Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).

That SK Hynix is maintaining its HBM shipment growth guidance is encouraging, said Sanjeev Rana, an analyst with CLSA Securities Korea. “The key question on everyone’s mind is, ‘How will the tariffs impact tech demand in the later part of the year?’”

Companies around the world are bracing for US tariffs and AI chip export curbs, as well as Chinese restrictions on rare metals, to trigger slowdowns in demand. Microsoft has pulled back on data center projects around the world, while analysts said Amazon is pausing some types of data center leases.

Those fears have slowed SK Hynix stock momentum, with its shares up just 3% this year. The company’s stock price fell 1.7% Thursday afternoon in Seoul, in line with the broader market.

It’s difficult to assess the impact of US tariffs at this point, Chief Financial Officer Kim Woo-hyun told analysts during an earnings conference call.

“With the expansion of protectionist policies such as tariff regulations and export restrictions, it has become more challenging than ever before to predict future market conditions,” he said.

While American clients account for about 60% of the company’s revenue, the percentage of direct exports to the US is “not that high,” with memory shipments for American customers often going to locations outside the US, he said.

For the March quarter, SK Hynix reported a better-than-expected operating income of 7.44 trillion won ($5.2 billion) on a 42% rise in revenue. Customers asking for expedited shipments of advanced chips as well as memory used in PCs and smartphones helped the company clock its second-highest quarterly performance, on the heels of record revenue and operating profit in the prior quarter.