From Coinpedia · By Shubham Vishwakarma
SK Hynix shares jumped around 8% in U.S. premarket on Wednesday after the South Korean chipmaker reported record quarterly earnings and forecast a prolonged memory shortage. Operating profit surged 632% year over year to 83.33 trillion won, beating analyst expectations, while revenue crossed 100 trillion won for the first time. The company also announced a roughly $75 billion shareholder-return plan, adding another catalyst to the rally.
SK Hynix Q3 Earnings: Revenue Tops KRW 104 Trillion
SK Hynix reported third-quarter revenue of KRW 104.62 trillion, up 328% year over year and 32% from the previous quarter. Operating profit reached KRW 83.33 trillion, rising 632% annually and 38% sequentially. The operating margin climbed to approximately 80%.
Both figures exceeded analyst expectations. Revenue came in above estimates of approximately KRW 98.3 trillion, while operating profit topped forecasts of KRW 76.7 trillion. Strong pricing and sales of higher-value memory products helped drive the improvement.
AI data centers require increasing quantities of memory to support advanced computing workloads. SK Hynix has benefited from demand for HBM used alongside AI accelerators, as well as server DRAM and enterprise solid-state drives.
The company expects HBM4 to overtake HBM3E in both shipment volume and revenue in the fourth quarter. That transition could provide another source of growth, although investors will need to assess whether elevated margins remain sustainable as the industry expands capacity
SK Hynix Expects Memory Shortage to Continue Through 2030
The supply outlook is central to the company’s earnings forecast. SK Hynix expects memory demand to continue exceeding supply through 2030, citing the complexity of advanced chip manufacturing and the time required to build new production facilities.
The company has signed long-term agreements with 14 major customers, covering more than 50% of its total production capacity for 2027 and 2028. It has also indicated that much of its HBM and DRAM output through 2029 is effectively sold out. These commitments provide greater visibility into future demand and support production planning.
SK Hynix Announces KRW 100 Trillion Shareholder-Return Plan
SK Hynix plans approximately KRW 100 trillion in shareholder returns for 2026, including at least KRW 30 trillion in cash dividends and more than KRW 60 trillion through share repurchases and cancellations. The total includes a previously announced KRW 40 trillion buyback program, which the company said it completed in October.
The board also approved a third-quarter dividend of KRW 20,000 per share and an additional KRW 20 trillion repurchase program. Of that additional amount, KRW 10 trillion is intended for share cancellation, with the remainder allocated to employee compensation.