South Korean memory giant SK Hynix posted a record first‑quarter net profit of $27.28 billion, roughly five times its prior year result. The surge reflects exploding demand for AI‑optimized DRAM and NAND chips, as cloud providers and data‑center operators scale up training clusters. Shares have jumped close to 90% so far in 2026, outpacing most peers, and investors have taken notice.

The earnings beat arrives as SK Hynix accelerates capex, earmarking billions to expand wafer fabs in Wonsan and Cheongju. The company aims to double its AI‑chip output by 2028, betting on the same customers that fuel Nvidia’s recent rally. Analysts see the profit jump as validation that memory makers can capture the AI premium before supply tightens, and expects revenue to climb sharply.

Investors rewarded the surge, pushing the stock toward a market‑cap of roughly $120 billion. With AI workloads consuming ever more memory, SK Hynix’s expanded capacity positions it to command higher pricing power and sustain margin expansion. The quarter’s performance solidifies the firm’s role as a critical supplier in the AI supply chain, underscoring its strategic relevance, as rivals scramble to keep pace.