Seoul:SK Hynix Inc. has announced record-high revenue and operating profit for the third quarter, fueled by strong demand for memory chips amid the ongoing artificial intelligence (AI) boom. The company also revealed a significant shareholder return program valued at over 100 trillion won (US$75.3 billion) set for 2026.
According to Yonhap News Agency, SK Hynix's operating profit increased by 557.2 percent year-on-year to 83.33 trillion won in the July-September period, while revenue rose 327.9 percent to 104.61 trillion won. The global semiconductor company's net profit also reached a new high of 39.77 trillion won, marking a 215.7 percent increase from the previous year.
The company attributes its record performance to the rising prices of key products and robust demand for AI memory, crediting its competitiveness in high-value-added products. SK Hynix has capitalized on the AI supercycle by supplying high-bandwidth memory (HBM) chips to Nvidia Corp., alongside benefiting from the rising prices of conventional memory chips. Its operating profit margin exceeded 80 percent in the third quarter.
SK Hynix has sold virtually all of its DRAM and HBM production capacity through 2029, underlining its strong demand outlook and earnings stability. CEO Kwak Noh-Jung emphasized the long-term contracts and technological competitiveness that underpin the company's business structure transformation.
Despite concerns over a potential peak in semiconductor demand, SK Hynix remains optimistic about the continued momentum behind AI investments. The company is set to focus on its sixth-generation HBM4 chips as a primary product starting in the fourth quarter.
In a move to reward shareholders, SK Hynix plans to return 60 trillion won following a previously completed 40 trillion-won program. More than 30 trillion won of this will be through cash dividends, with additional returns provided via special dividends and quarterly share buybacks. The company also intends to share gains from its investment in Japan's Kioxia Corp. through special dividends.
SK Hynix's decision to suspend the listing of its U.S. subsidiary, Solidigm, comes amid shareholder opposition and regulatory concerns. The proposed listing was intended to raise funds for expanding Solidigm's production facilities.
Following the earnings announcement, SK Hynix's shares rose over 10 percent after experiencing a 30 percent drop in the past three months post-second-quarter earnings release.