Overview
- SK hynix reported record third-quarter revenue of about 104.6 trillion won and operating profit of about 83.3 trillion won, figures disclosed on Oct. 28 that far exceeded analysts' expectations and drove a sharp rally in Korean chip stocks.
- The company announced a shareholder-return package exceeding 100 trillion won for 2026, including at least 30 trillion won in cash dividends and large buybacks, and said much of the funds will come from realized gains such as its Kioxia stake.
- Management told investors that its DRAM and high-bandwidth memory (HBM) volumes are effectively sold out through 2029 and that the industry is likely to face memory supply deficits through 2030 because HBM production uses far more wafer capacity per bit.
- SK hynix has signed long-term agreements with 14 major customers that already reserve more than half of its 2027–2028 capacity, and it plans to accelerate HBM4 and advanced DRAM ramps including the M15X and Yongin expansions to meet AI-server demand.
- The results and payout plan prompted a large market reaction and deepen an industry narrative that AI infrastructure spending will keep memory tight; investors and hyperscalers should watch capex and contract terms next year because new fabs take years to bring online.