South Korean chipmaker SK hynix has reported record quarterly revenue and operating profit as the global artificial intelligence boom drives demand for advanced memory chips used in AI servers and data centers.
For the July–September period of 2026, the company recorded 104.62 trillion won ($78.9 billion) in revenue and 83.33 trillion won ($62.8 billion) in operating profit, according to its October 28 earnings announcement. Revenue surpassed 100 trillion won for the first time in the company’s history. Source: SK hynix Additional source: Yonhap News Agency
AI Boom Drives Record Earnings
SK hynix’s third-quarter operating profit increased approximately 632% from the same period a year earlier, while revenue rose nearly 328%. Both figures also set new quarterly records.
The company attributed its performance to strong demand for high-value memory products, particularly high-bandwidth memory (HBM), as well as server memory and enterprise solid-state drives.
HBM is a type of memory designed to transfer large amounts of data at high speeds. It plays a crucial role in AI accelerators used to train and operate advanced AI models. As technology companies expand their data center infrastructure, demand for these specialized memory chips has become an increasingly important driver of the semiconductor industry.
SK hynix is a major supplier of HBM used in AI computing systems, including those built around Nvidia’s processors.
HBM4 and Long-Term Supply Deals
SK hynix said shipments of its next-generation HBM4 products had begun in earnest and that HBM4 was expected to become its main HBM product from the fourth quarter of 2026.
The company is also expanding production capacity to respond to rising demand for AI memory.
To improve visibility into future demand, SK hynix said it had signed long-term supply agreements with 14 major customers, including leading global cloud service providers. The agreements cover more than 50% of its total production capacity for 2027 and 2028.
These contracts could help the company plan production and investment more effectively, although future earnings will still depend on market conditions, prices and customer demand.
SK hynix Plans Major Shareholder Returns
Alongside its earnings announcement, SK hynix outlined a shareholder-return program totaling approximately 100 trillion won for 2026.
The company said the plan includes returning most of its gains from its investment in Japanese semiconductor company Kioxia to shareholders. The announcement followed an earlier 40 trillion-won shareholder-return program, with a further 60 trillion won planned.
The scale of the proposed returns reflects the company’s strong financial performance, but it also places attention on how SK hynix balances shareholder payouts with the substantial investment needed to expand advanced chip production.
What the Results Mean for the AI Industry
SK hynix’s results highlight how the expansion of AI infrastructure is reshaping the semiconductor business. Memory chips, once less visible to consumers than processors and graphics cards, have become a critical part of the supply chain for AI systems.
However, record profits do not guarantee that the current pace of growth will continue indefinitely. Semiconductor demand and pricing can change, and the industry faces questions about the long-term sustainability of AI investment.
For now, SK hynix’s latest results show how strongly demand for advanced memory is contributing to South Korea’s position in the global technology industry.
Source: SK hynix — Third-Quarter 2026 Financial Results
Additional Sources: Yonhap News Agency; Reuters
Category: Business
Published: October 29, 2026