(Bloomberg) — SK Hynix Inc. (SKHY) posted a stronger-than-expected seven-fold surge in quarterly profit and unveiled an additional shareholder return program for 2026 worth 100 trillion won ($75 billion), underscoring relentless demand for AI hardware.
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The world’s second-biggest memory chipmaker reported operating profit of 83.3 trillion won in the September quarter, beating analysts’ average projection for 77.5 trillion won. Revenue climbed to 104.6 trillion won, against the average estimate of 99 trillion won.
The result bolsters hopes for sustained profit from the surge in demand for memory from artificial intelligence developers building data centers. That’s come in for increasing scrutiny in recent weeks with challenges in financing and setting up ambitious infrastructure projects.
SK Hynix has emerged as one of the biggest beneficiaries of the AI frenzy, supplying high-bandwidth memory to Nvidia Corp. while capitalizing on soaring prices of conventional memory chips. Its operating margins remain at historically elevated levels, reflecting tight supply. On Wednesday, the company said it expects memory supply shortages to last through 2030.
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The additional shareholder payouts could provide another catalyst for the stock price after the chipmaker abandoned a potential US listing of its Solidigm unit amid shareholder opposition and regulatory scrutiny. Solidigm is in talks with the US Commerce Department to invest $45 billion in a new chip plant on American soil, Bloomberg News reported.
Memory now constitutes roughly a third of all expenses related to AI data centers, according to research by Macquarie, and SK Hynix plays a key role in that business with its close collaboration with Nvidia. That share of overall computing-hardware spending is expected to rise in the coming years as HBM prices are set to more than double in 2027, Macquarie said.
SK Hynix has prioritized long-term contracts with customers including Nvidia. Like competitors Samsung Electronics Co. and Micron Technology Inc., it’s shifted production in recent years toward HBM, tightening supply of conventional memory.
“While HBM is seeing a price appreciation, the sharp surge in earnings is attributed to the rapid price hikes in conventional DRAM and NAND,” said MS Hwang, director at Counterpoint Research. “Quarterly earnings have not yet reached their peak and the upward trajectory will likely sustain at least through 2027.”