Catenaa, Wednesday, October 28, 2026- SK Hynix stock rose more than 12% on Wednesday after the memory chip maker posted a more than 600% increase in Q3 profit.
The company reported quarterly revenue of 104.62 trillion won ($78.7 billion), up 328% from a year earlier, while operating profit surged 632% to 83.33 trillion won ($62.7 billion), according to its latest financial statement.
Meanwhile, quarter-over-quarter revenue and operating profit increased by 32% and 38%, respectively.
US-listed shares rose more than 12%, but the stock is down more than 14% since September 28.
The firm said HBM4 and related AI memory, including shipments to Nvidia, drove the quarter’s performance.
Management disclosed that AI memory production capacity is effectively sold out through 2029, with long-term contracts covering much of 2027 to 2028 output.
The company expects memory-chip demand to exceed available supply through 2030, driven by growing AI adoption among businesses and the development of robotics and autonomous vehicles.
The company announced a historically large 2026 shareholder returns plan, funded partly by gains from its Kioxia stake, that combines substantial dividends with a significant buyback and share cancellation.
Record Q3 2026 AI memory results and the unprecedented 2026 shareholder return plan are only part of the SK hynix story.
RBC Capital Markets analyst Srini Pajjuri told SimpleWallST that he sees a credible path for the cycle to extend another five quarters.
“Robust AI demand, coupled with a shift toward memory-intensive agentic AI, continues to outpace supply, which is constrained by structural headwinds,” Pajjuri wrote on Monday.
Yahoo Finance reported that SK Hynix is returning an additional $45 billion to shareholders, bringing total buybacks and dividends to an unprecedented $75.2 billion this year.
SK Hynix has been one of this year’s highfliers. The South Korean company, listed on the Kospi, listed on the Nasdaq earlier this year, according to Yahoo Finance.
US-listed shares traded near their IPO price after July volatility and earlier-month swings.
Yahoo Finance reported that the company shelved plans to list its Solidigm flash memory unit in the US after regulators and shareholders opposed the move.
