Can the AI boom sustain SK Hynix's record earnings?
Written by Anupam Nagar, ETMarkets.com|Oct 28, 2026, 12:10:44 PM IST1/7SK Hynix Q3 Profit Jumps Seven-FoldSouth Korean chipmaker SK Hynix reported record quarterly earnings as booming demand for artificial intelligence…
SK Hynix Q3 Profit Jumps Seven-Fold
South Korean chipmaker SK Hynix reported record quarterly earnings as booming demand for artificial intelligence memory chips boosted revenue and profitability. The results underscore the company's growing role in supplying advanced memory used in AI data centres. (Sources: CNBC, Yahoo Finance)
Operating Profit Soars to 83.3 Trillion Won
SK Hynix's operating profit jumped more than seven-fold year-on-year to 83.3 trillion won, while revenue surged 328% to a record 104.6 trillion won. Net profit reached 39.8 trillion won in the July-September quarter. Operating profit also exceeded the analyst estimate of 76.7 trillion won tracked by LSEG, highlighting the strength of the company's earnings momentum.
AI Infrastructure Boom Drives Memory Demand
Expanding AI data centres are driving demand for high-bandwidth memory (HBM) and advanced server DRAM. SK Hynix has benefited from stronger demand for server DDR5 memory and the ramp-up of its next-generation HBM products. Higher prices for key memory products have also supported revenue growth and profitability.
HBM4 Set to Become Mainstream Product in Q4
SK Hynix expects HBM4 to overtake HBM3E in both shipment volume and revenue in the fourth quarter, reflecting the growing importance of next-generation memory for AI applications. The company also plans to ramp up its M15X facility to maximum capacity by the end of the year. The expansion is aimed at supporting rising demand for advanced memory products.
Memory Shortage Could Persist Through 2030
SK Hynix expects memory demand to outpace supply as investment in AI infrastructure continues to expand. The company has signed long-term agreements with 14 major customers covering more than 50% of its total production capacity for 2027 and 2028. It also plans to increase investment to expand production capacity next year. However, the outlook for a prolonged shortage remains dependent on future demand, supply additions and the pace of AI investment.
Can the AI Memory Boom Sustain Its Momentum?
SK Hynix's record earnings highlight its strong position in the AI memory supply chain, supported by demand for advanced HBM products, long-term customer agreements and capacity expansion. Investors will now watch whether AI infrastructure spending and memory prices can sustain the current pace of earnings growth. While supply constraints could support pricing, any slowdown in AI investment or faster-than-expected capacity additions could challenge the industry's growth outlook.
(Disclaimer: This slideshow is based on inputs from agencies. These do not represent the views of The Economic Times)ETMarkets.comRead more onAI boomSK HynixSK Hynix Q3 ProfitSK Hynix Q3 Earningsmarkets news
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
