SK Hynix Posts 632% Profit Surge, Pledges $75 Billion to Shareholders and Sees Memory Shortage Through 2030

SK Hynix reported record third-quarter results on October 28, with net profit jumping 632%, or more than sevenfold, on surging artificial intelligence infrastructure demand. Revenue came in at KRW104.6 trillion, roughly $78.2 billion, up 328% year over year and 31.9% quarter over quarter, while operating profit reached KRW83.3 trillion, beating analyst expectations. DRAM and NAND average selling prices each rose more than 20% sequentially, dispelling lingering concerns about a memory-demand slowdown.

Alongside the earnings, the company unveiled a $75 billion shareholder return plan, including a KRW20 trillion buyback and a KRW14 trillion dividend for the third quarter alone. Korea-listed shares gained 11% on the day, adding approximately $80 billion in market capitalization, while US-listed ADRs rose 8% in premarket trading to $156.78. The Kospi surged as much as 6.84%, putting the benchmark on pace for its biggest single-day gain since July 31, and rival chipmakers Micron and SanDisk also moved higher on the news.

The outlook proved just as consequential as the headline numbers. Management said it expects memory demand to outpace supply through 2030 and projected that its next-generation HBM4 chips will surpass HBM3E in both volume and revenue as soon as the fourth quarter. The company also disclosed long-term supply agreements with 14 major customers that cover more than half of its production capacity for 2027 and 2028, reinforcing the durability of AI-driven demand. SK Hynix holds approximately 57% of the global high-bandwidth memory market and about 32% of overall DRAM supply.

Analyst reaction was broadly positive, with the Futurum chief executive describing the stock as looking "ridiculously cheap," and RBC Capital reiterating its rating citing a strong HBM outlook. Susquehanna analyst Mehdi Hosseini held his neutral rating and said he preferred Micron and Samsung on a relative basis. On the competitive front, China's CXMT was reported to be preparing limited HBM3E production within two months, though at yields of only 20% to 30% compared with roughly 70% at SK Hynix, and its chips were said to perform closer to SK Hynix's older HBM3 generation in testing.

The results provided fresh momentum for the broader AI trade ahead of closely watched earnings from Microsoft and Alphabet and a Federal Reserve rate decision on the same day. Nasdaq 100 futures pushed higher, with the index having closed at 29,651.44, up 1.29%, while the VIX fell 3.32% to 17.78 as risk appetite firmed across markets.