South Korean chipmaker SK Hynix announced exceptional third-quarter results on Wednesday, reporting record revenue and profit. A booming demand for its high-bandwidth memory (HBM), crucial for generative AI chipsets, largely fueled this success. The company is already seeing its entire planned supply of memory products for 2026 sold out, prompting plans to boost production capacity that year.
SK Hynix reported revenue of 24.45 trillion won ($17.13 billion) and an operating profit of 11.38 trillion won. Revenue increased by an impressive 39% compared to the same period last year, and operating profit saw a significant 62% surge year-on-year. Quarterly figures also showed strong growth, with revenue up 10% and operating profit climbing 24%.
This marks the first time the company’s quarterly operating profit has exceeded 10 trillion won. Following this positive report, SK Hynix shares in South Korea rose by 3.5%, extending their year-to-date rally to a remarkable 210%.
The company plays a vital role in the technology sector, producing memory chips used in everything from servers to consumer electronics such as smartphones and laptops. SK Hynix has particularly benefited from the artificial intelligence boom, standing out as a key supplier of HBM chips essential for AI data center servers.
“Customer investments in AI infrastructure have driven memory segment demand sky-high,” an SK Hynix statement read. “This pushed SK Hynix past its previous quarter’s record, thanks to increased sales of high-value products.” HBM falls under the broader category of dynamic random access memory (DRAM), a type of semiconductor memory.
SK Hynix has established an early lead in the HBM market, becoming a primary supplier to top AI chip designer Nvidia. The company will begin supplying its next-generation HBM4 chips—the sixth generation of HBM technology—this quarter, following discussions with various customers. While SK Hynix currently dominates, competitors like U.S.-based Micron and South Korea’s Samsung are working hard to catch up. Micron has already supplied some HBM technology to Nvidia, and Samsung recently passed Nvidia’s qualification tests for an advanced HBM product.
SK Hynix Chief Financial Officer Kim Woohyun noted, “AI innovation has created a new paradigm in the memory market, with demand spreading across all product areas.” He affirmed the company’s commitment to strengthening its AI memory leadership through market-leading products and advanced technology.
Analysts expect the HBM market to continue its rapid growth, potentially reaching around $43 billion by 2027. This offers substantial earnings potential for memory manufacturers like SK Hynix. A recent Counterpoint Research report showed SK Hynix leading the DRAM market by revenue in the second quarter with a 38% share, having surpassed Samsung in the first quarter. The global HBM market saw a massive 178% year-on-year growth in the second quarter, with SK Hynix holding a commanding 64% share. Ray Wang from Futurum Group anticipates SK Hynix will maintain its dominant HBM market leadership through next year, likely sustaining about 60% global share as a primary supplier to major customers like Nvidia and Google.
