SK Hynix posted better than expected quarterly profits as booming demand for AI infrastructure drove sales of its advanced memory chips. Operating profit rose 38% to Won83.33tn ($62.5bn) in the three months to September 30, beating forecasts. Revenue was up 32% to Won104.62tn, driven by rising memory prices and increased sales of high-bandwidth memory (HBM).
The company plans to return about Won100tn ($75bn) to investors through dividends and buybacks. Hynix stated its DRam and HBM production was sold out until 2029 and forecast a sharp increase in HBM revenue next year. Executives expected major customers’ AI revenue and cash flow to improve, supporting continued infrastructure investment.
Hynix shares jumped 9% on the results, though they remain 17% lower over the past month. South Korea’s Kospi gained more than 6%, with the chipmaker accounting for about a fifth of the index. Rival Samsung Electronics also gained more than 8%.
Some calm has returned to the AI trade following Anthropic’s blockbuster IPO filing. Peter Kim of KB Securities noted Hynix’s results confirmed its momentum, but the market is focused on next year and beyond due to concerns over AI spending sustainability. Hynix’s operating margin reached 79.7%, alongside US rival Micron’s 80.7%.
Net profit fell 57.7% to Won39.78tn, partly due to a previous quarter's gain from Kioxia's share price surge. Hynix forecast persistent shortages through 2030 as AI adoption broadened. Long-term agreements with 14 major customers now cover more than half of production capacity for 2027 and 2028.
Executives said they would build new factories ahead of demand but install equipment in stages to allow expansion to be slowed if market conditions weakened. SK Hynix halted a planned US listing of its California-based flash memory subsidiary Solidigm due to market volatility and falling semiconductor stock prices.
Source: Financial Times Companies · Summarized by HeadlinesBriefing