SK Hynix Shares Surge After Record Quarterly Profit on AI Chip Demand

SK Hynix shares surged following the company’s report of a record quarterly profit. The South Korean memory chipmaker said third-quarter operating profit reached 83.33 trillion won, more than seven times the year-earlier figure, while revenue climbed to 104.62 trillion won. Both figures set new company records and exceeded market forecasts. Shares in Seoul rose more than 10 percent on the results, lifting the broader Kospi index. The performance marked the sixth consecutive quarter of record revenue and operating profit. Net profit rose 215.7 percent year-on-year to 39.78 trillion won. The operating margin approached 80 percent. SK Hynix said rising prices for key products and higher sales of high-value-added memory, including high-bandwidth memory (HBM), drove the results amid continued strong demand for AI infrastructure. Earnings Details and AI Demand Revenue increased 327.9 percent from a year earlier and 32 percent from the prior quarter. Operating profit rose 632 percent year-on-year and 38 percent sequentially. Quarterly sales surpassed 100 trillion won for the first time in the company’s history. Analysts had expected operating profit around 76–77 trillion won; the reported figure beat that consensus by roughly 9 percent. Demand for AI-related memory remained the primary driver. Shipments of HBM4 to major customers, including Nvidia, ramped up, while server DDR5 sales increased substantially. Enterprise solid-state drives also contributed. SK Hynix stated that virtually all of its DRAM and HBM production capacity through 2029 is already sold out, and it expects memory supply shortages to persist through 2030. Company executives said AI investment momentum is continuing as customer spending translates into broader adoption and more diversified buyers. Shareholder Returns and Market Reaction Alongside the earnings, SK Hynix announced a shareholder return program totaling about 100 trillion won (approximately $75 billion) for the year. This includes more than 30 trillion won in cash dividends and more than 60 trillion won in share repurchases and cancellations, building on an earlier 40 trillion won program. The company also decided to discontinue its review of a potential U.S. IPO for its Solidigm unit, citing market conditions. The results eased some market concerns about the durability of AI-related spending. SK Hynix shares jumped more than 10 percent after the release, and Samsung Electronics shares also rose. The Kospi gained more than 6 percent. Analysts noted that the fourth quarter is traditionally stronger and that operating profit could approach 100 trillion won if current trends hold. Some observers cautioned that memory prices and AI capital expenditure remain subject to cyclical pressures, though the company expressed confidence in sustained demand. What to Watch Full-year 2026 results and whether operating profit approaches or exceeds 100 trillion won in the fourth quarter. Progress on HBM4 volume shipments and pricing relative to prior generations. Execution of the 100 trillion won shareholder return program. Any updates on long-term supply agreements with major AI customers. Memory pricing trends and capacity utilization through 2027. Broader market reaction to AI infrastructure spending signals from other large technology companies. SK Hynix shares surged after the company reported a record third-quarter operating profit of 83.33 trillion won and revenue above 104 trillion won. Strong AI memory demand, particularly for HBM, drove the results, and the chipmaker outlined roughly 100 trillion won in shareholder returns. The performance marked a sixth straight quarter of record figures and supported gains across related technology stocks. Digital8Hub will continue to track semiconductor earnings and AI infrastructure developments.