SK Hynix posts record profit, says AI memory booked through 2029

Overview

Updated Yesterday

SK hynix posted a record quarterly operating profit of 83.3 trillion won (about US$62.5 billion) for July through September, up sevenfold from a year earlier and above analyst expectations. Revenue crossed 100 trillion won for the first time.

The company plans to return about 100 trillion won (US$75 billion) to shareholders this year through dividends and buybacks. Executives say conventional DRAM and high-bandwidth memory output is booked through 2029, and that demand will outpace supply through 2030. The results are a direct read on the AI buildout: SK hynix is the main memory supplier for Nvidia's AI accelerators.

Why it matters

This supplier of memory for Nvidia's AI accelerators is booked through 2029 — the clearest sign yet the AI infrastructure buildout is still accelerating, not peaking.

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Key Indicators

$62.5B

Q3 2026 operating profit

Record quarterly profit, up 632% from a year earlier and 7% above the analyst consensus.

104.6T KRW

Q3 2026 revenue

First quarter above 100 trillion won, up 32% from the prior quarter.

80%

Q3 2026 operating margin

Marks a year-earlier margin of about 24% (83.3T won profit on 12.1T won revenue).

$75B

Planned 2026 shareholder returns

Total of 100 trillion won in dividends and buybacks, including the 40 trillion won repurchase completed in October.

50%+

LTA coverage of 2027-2028 capacity

Long-term agreements with 14 major customers, up from 10 last quarter, covering over half of production.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Kwak Noh-Jung

Chief executive officer, SK hynix

Leading SK hynix through record earnings; first earnings call appearance in six years

Organizations Involved

SK Hynix

Memory chip manufacturer

Reporting record quarterly results on AI memory demand

The world's second-largest memory chip maker and main supplier of high-bandwidth memory to Nvidia.

Nvidia Corporation

AI chip designer / key customer

Anchor customer for SK hynix high-bandwidth memory

The leading designer of AI accelerators and the main buyer of SK hynix's high-bandwidth memory.

Timeline

August 2026 October 2026

3 events Latest: Yesterday

October 2026
Seoul shares jump over 6% on results and return plan
Latest Market Reaction

KOSPI surges as SK hynix shares rise about 11%; company confirms 100 trillion won in 2026 shareholder returns.
Yesterday
Record Q3 results: 83.3 trillion won operating profit
Earnings

Revenue tops 100 trillion won for the first time; CEO discontinues Solidigm IPO review and says DRAM and HBM are sold out through 2029.
2 days ago
August 2026
SK hynix announces 40 trillion won share buyback
Money Moves

Company rolls out the first tranche of an expanded shareholder return plan tied to free cash flow.
August 2026

Scenarios

AI memory shortage holds, record profits continue

Likely Resolves by Apr 30, 2027

Discussed by: SK hynix management and chip analysts tracking hyperscaler capital spending

SK hynix has signed long-term agreements with 14 major customers covering over half its 2027-2028 capacity, and major cloud providers reported 30-80% year-on-year cloud revenue growth. If those commitments convert to orders and spending stays high, record results extend into next year and the shortage forecast through 2030 holds.

AI financing strains crack the memory boom

Possible Resolves by Apr 30, 2027

Discussed by: Market watchers cited by Business Times flagging challenges financing AI datacenter projects

Recent weeks have seen scrutiny of how AI infrastructure projects are financed. If hyperscalers trim spending or ambitious builds get delayed, the demand that lifted DRAM and HBM prices could soften. SK hynix's forecast of shortages through 2030 could prove optimistic, and its sold-out 2029 capacity claims would weaken.

SK hynix completes 100 trillion won return program

Likely Resolves by Q1 2027

Discussed by: SK hynix board and management, committed to returning at least 50% of free cash flow

The board resolved a 14 trillion won cash dividend and a 20 trillion won buyback this quarter. Combined with the completed 40 trillion won repurchase, the announced 100 trillion won total is within reach if the remaining tranches execute as scheduled through year-end.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2017-2018

DRAM supercycle (2017-2018)

Memory prices more than doubled on surging data center demand for DRAM and NAND. Samsung and SK hynix posted record operating margins near 50% for several consecutive quarters.

Then

Capacity expansions announced during the boom came online in 2019, prices fell by more than half, and both companies' profits collapsed within two quarters.

Now

The boom-bust cycle reinforced the industry's reputation for violent swings and pushed memory makers toward more disciplined capacity management.

Why this matters now

SK hynix now forecasts memory shortages through 2030 and is expanding investment. The 2018 bust shows how sustained-scarcity projections can unwind when new supply arrives faster than demand grows.

2021-2022

COVID-era chip shortage (2021-2022)

Pandemic demand for laptops, phones, and cars collided with supply chain disruptions, producing a global chip shortage and surging prices across the industry.

Then

Chipmakers and governments poured money into new factories. By 2023, demand had normalized and the industry swung into a downturn with inventory gluts.

Now

The episode set off a wave of government semiconductor subsidies, including the US CHIPS Act, reshaping where capacity is being built.

Why this matters now

Today's AI memory shortage has the same shape: a demand spike met by aggressive capacity plans. The open question is whether the buildout overshoots when AI spending eventually normalizes.