Key Highlights
- SK Hynix reported preliminary third-quarter revenue of 104.6 trillion won and operating profit of 83.3 trillion won on Oct. 28, both records.
- SK Hynix said signed long-term agreements cover more than half of its total production capacity for 2027 and 2028; the company expects memory demand to outstrip supply through 2030.
- SK Hynix forecasts memory shortages through 2030. That is a company projection, not a certainty.
- Analysts and investors continue to debate whether the AI memory boom could turn into oversupply.
SEOUL, Nov. 3, 2026 — South Korean chipmaker SK Hynix reported record quarterly results last week, putting memory chips at the center of the debate over how long AI hardware spending can last.
Record Results, Still Preliminary
SK Hynix said in a preliminary filing on Oct. 28 that third-quarter revenue rose 327.9% from a year earlier to 104.62 trillion won, according to The Korea Herald. It was the first quarter above 100 trillion won.
Operating profit rose 632.1% to 83.33 trillion won, about $62.8 billion, The Korea Times reported. The Korea Herald said that beat the roughly 77 trillion won analysts expected, with an operating margin near 80%.
The figures are preliminary. One outlet noted the company’s independent review was not complete, so final numbers could differ.
What Is Driving Demand
The company credited HBM4, an advanced memory used in AI processors, and server DDR5 for the growth, the Korea Herald reported. CNBC reported in April that SK Hynix is the leading supplier of HBM for AI data centers, holding a 57% share of that market, per Counterpoint Research.
Counterpoint also said Samsung reclaimed the top spot in overall DRAM revenue in the final quarter of 2025, according to the same CNBC report.
Kim Ki-tae, the company’s head of HBM sales and marketing, said customers are asking for more than twice the volume it can supply, per the Korea Herald.
What the Company Has Contracted
SK Hynix said it has signed long-term agreements with 14 major customers, including global cloud providers. Those agreements cover more than half of its total production capacity for 2027 and 2028, according to the company’s Oct. 28 earnings announcement.
The company expects memory demand to exceed supply through 2030. That is a company forecast, not a guarantee, and it does not mean all production through 2029 is already covered by signed contracts.
Capital Returns and Spending
SK Hynix announced about 100 trillion won in planned 2026 shareholder returns, including at least 30 trillion won in dividends and a new 20 trillion won buyback, the Korea Herald reported. Its third-quarter dividend is 20,000 won per share.
The company expects spending to rise sharply next year as the first phase of its Yongin fab moves toward full-scale operation. It also discontinued its review of a possible Solidigm IPO, according to the company’s Oct. 28 announcement.
Risks Investors Are Weighing
SK Hynix pushed back on fears that the AI boom is peaking, according to the Korea Herald. Not everyone is convinced.
A Yahoo Finance analysis argued that memory chips remain commodity products, so today’s shortage could flip into oversupply. That is an opinion, not a forecast from the company.
Shares have been volatile. The Korea Times reported they fell 18.8% between Sept. 1 and Oct. 27, then rose 10.89% on Oct. 28.
What Comes Next
SK Hynix expects HBM4 shipments to overtake the earlier HBM3E generation in the fourth quarter, the Korea Herald said. That is a forecast.
This article is for information only and is not investment advice.
Related reading: South Korea Exports Jump 93.7% in October as AI Chip Demand Surges