Seoul:SK hynix Inc. announced that it achieved unprecedented revenue and operating profit levels in the third quarter, driven by a surge in demand for memory chips amid the ongoing artificial intelligence (AI) boom. The company also unveiled a significant shareholder return program valued at over 100 trillion won (approximately US$75.3 billion) set for 2026.
According to Yonhap News Agency, SK hynix's operating profit skyrocketed by 557.2 percent year-on-year to reach 83.33 trillion won during the July-September period. The company's revenue also saw a substantial increase of 327.9 percent on-year, climbing to 104.61 trillion won, as stated in the company's regulatory filing.
The semiconductor company has consistently reported record quarterly revenue and operating profit for six consecutive quarters since the second quarter of the previous year. Its net profit reached a record 39.77 trillion won, marking a 215.7 percent increase from the prior year.
The robust performance was attributed to the rising demand for AI memory and high-value-added products, coupled with increased prices for key products. SK hynix has benefited significantly from the AI supercycle, supplying high-bandwidth memory (HBM) chips to Nvidia Corp. and capitalizing on the rising prices of conventional memory chips.
SK hynix revealed that it has sold out virtually all of its DRAM and HBM production capacity through to 2029, thanks to long-term agreements and ongoing discussions with customers. The company's CEO, Kwak Noh-Jung, emphasized that technological competitiveness has fostered customer trust, leading to long-term contracts and a stable business structure with mid- to long-term demand visibility.
Despite concerns about peak semiconductor demand and AI investment profitability, SK hynix remains optimistic about the continued momentum of AI investments. The company plans to launch its sixth-generation HBM4 chips in the fourth quarter.
SK hynix's shareholder return strategy includes cash dividends exceeding 30 trillion won, additional returns through special dividends, and quarterly share buybacks. The company intends to share most of its realized gains from its investment in Japan's Kioxia Corp. with shareholders through special dividends scheduled for the third quarter and fiscal year-end.
In a recent development, SK hynix decided to suspend plans to list its U.S. subsidiary, Solidigm, due to market conditions, regulatory scrutiny, and shareholder opposition. The initial public offering was initially intended to raise capital for expanding Solidigm's production facilities.
Following the earnings announcement, SK hynix shares experienced a significant rise, trading more than 10 percent higher on Wednesday after facing a nearly 30 percent decline in the past three months.