SK Hynix (SKHY) Stock: Jumps 12% as Operating Profit Skyrockets 632% Year Over Year

TLDR

• SK Hynix Stock Jumps 12.35% as Operating Profit Soars 632% Year Over Year
• SK Hynix Revenue Tops 100 Trillion Won for the First Time on AI Memory Demand
• SK Hynix Posts Record Earnings as AI Memory Shortages Support Market Growth
• SK Hynix Plans 100 Trillion Won in Shareholder Returns After Record Results
• SK Hynix Targets HBM4 Growth as Memory Supply Shortages Extend Toward 2030

SK Hynix (SKHY) shares jumped 12.35% to $163.31, adding $17.95 as strong buying pushed the stock higher. The rally followed record third-quarter revenue and operating profit, supported by rising demand for artificial intelligence memory. The South Korean chipmaker also announced substantial shareholder returns and plans to expand production capacity.

SK hynix Inc., SKHY

SK Hynix Reports Record Revenue and Operating Profit

SK Hynix recorded 104.62 trillion won in third-quarter revenue, marking its first quarterly result above 100 trillion won. Revenue increased 32% from the previous quarter and surged 328% compared with the same period last year. Meanwhile, operating profit reached 83.33 trillion won, climbing 38% quarter over quarter and 632% year over year.

The company achieved an operating margin of 80%, compared with 76% in the second quarter and 47% a year earlier. However, net income fell 58% quarter over quarter to 39.78 trillion won, although it increased 216% annually. The results reflect strong demand for advanced memory products used in AI servers and data centers.

SK Hynix attributed its performance to higher prices for key products and growing sales of high-value memory. Server DDR5 shipments supported DRAM revenue, while HBM4 shipments began expanding during the quarter. Additionally, demand for 321-layer triple-level cell enterprise solid-state drives supported NAND sales.

AI Memory Shortages Support Production Expansion Plans

SK Hynix expects memory demand to outpace supply through 2030 as AI infrastructure investment expands. The company identified enterprise AI, personal AI, autonomous driving, and robotics as important sources of future memory demand. However, advanced manufacturing requirements and lengthy factory construction timelines could limit the industry’s ability to increase supply quickly.

To address rising demand, SK Hynix plans to increase production using its sixth-generation 10-nanometer-class process technology. The company also intends to expand DDR5 and LPDDR5 SOCAMM sales for AI servers. Furthermore, it plans to bring its M15X facility to maximum capacity by year-end to increase HBM4 production.

SK Hynix expects HBM4 to exceed HBM3E in both shipment volume and revenue during the fourth quarter. Meanwhile, the company plans to raise the share of 321-layer NAND to more than half of domestic production capacity. These measures aim to strengthen its position in high-performance memory and enterprise storage markets.

Long-Term Contracts and Shareholder Returns Shape Growth Strategy

SK Hynix has signed long-term agreements with 14 major customers, including leading global cloud service providers. These contracts cover more than 50% of its total production capacity for 2027 and 2028. The agreements improve demand visibility and allow the company to plan production around customer requirements.

The company also expects to increase investment significantly next year as the first phase of its Yongin facility advances. However, management plans to adjust investment levels according to demand, profitability, product competitiveness, and capital efficiency. This approach supports capacity expansion while linking spending decisions to market conditions.

SK Hynix announced approximately 100 trillion won in total shareholder returns for fiscal 2026. The plan includes at least 30 trillion won in cash dividends and at least 60 trillion won in share repurchases and cancellations. The board also approved a third-quarter dividend of 20,000 won per share, including a special dividend reflecting gains from its Kioxia investment.

The company completed a previously announced 40 trillion won share repurchase and plans to cancel those shares shortly. It also approved another 20 trillion won share repurchase, with 10 trillion won allocated for cancellation and the remainder for employee compensation. Together, record earnings, expanding AI memory demand, and substantial shareholder returns form the central drivers behind SK Hynix’s latest stock rally.

The post SK Hynix (SKHY) Stock: Jumps 12% as Operating Profit Skyrockets 632% Year Over Year appeared first on Blockonomi.