SK Hynix Profit Jumps Seven-Fold to a Record — and It's Sold Out Until 2029

SK Hynix reported a more than seven-fold jump in quarterly operating profit to a record 83.3 trillion won on Wednesday, October 28, 2026, and said its HBM and DRAM chips are sold out until 2029. The South Korean memory maker, a key Nvidia supplier, also unveiled shareholder returns of about 100 trillion won — roughly $75 billion — for this year, and its shares rallied as much as 9.4% in morning trade in Seoul.

What happened, in one paragraph

SK Hynix said operating profit for July to September reached 83.3 trillion won, up from 11.4 trillion won a year earlier and ahead of the 76.7 trillion won LSEG SmartEstimate. Revenue rose 328% to 104.6 trillion won. Dow Jones, via Morningstar, described the result as blockbuster earnings, with net profit tripling for the third quarter. The driver, both reports said, was continued AI infrastructure demand pushing up memory chip prices.

The key numbers

Operating profit: 83.3 trillion won, a quarterly record, versus 11.4 trillion won a year earlier.
Revenue: 104.6 trillion won, up 328% year on year.
Shareholder returns: about 100 trillion won (about $75 billion) this year — more than 30 trillion won in cash dividends and more than 60 trillion won in share repurchases and cancellations, including 40 trillion won announced in August.
Share reaction: shares rallied as much as 9.4% in morning trade, Reuters reported; Morningstar/Dow Jones put the Wednesday rise at 9.1%, supporting a 5.8% rise in the KOSPI.

Why it's blowing up

The headline profit is only half the story. SK Hynix said it has sold out of HBM and DRAM until 2029, that HBM demand was double what it can supply, and that a chip shortage is likely to continue through 2030. That directly answers the question hanging over the AI trade this week — whether customers' AI spending is slowing. Chief Financial Officer Kim Woo-hyun said customers were looking closer at project feasibility and timing, but added: "We expect AI investment momentum to continue, as customers' AI spending is translating into broader adoption of AI services and tangible business results, while the range of companies investing in AI is also becoming more diversified."

SK Hynix is the global leader in HBM — high-bandwidth memory used in AI processors — accounting for almost half the market, according to Nomura data cited by Reuters. When the HBM leader says demand is twice its supply, investors read it as a signal for the whole AI hardware chain, ahead of Alphabet and Microsoft earnings later on Wednesday in the United States.

Locking in customers through 2028

SK Hynix said it has signed long-term agreements with 14 major customers, covering more than 50% of total production capacity for 2027 and 2028, and is discussing extending terms that are typically five years. It plans significantly higher capital expenditure next year, and will return most of its Kioxia investment gain via a special dividend. "The results have eased many of the market's concerns," said Ryu Young-ho at NH Investment & Securities, who said fourth-quarter profit could approach 100 trillion won. At eToro, Josh Gilbert called the return package "massive" and a sign of confidence that cash will keep flowing, via Dow Jones.

What this means for markets

Reuters' Asia wrap noted SK Hynix added to a buoyant mood, with Japan's Nikkei up 1.2% and the KOSPI jumping more than 3% in early trade. SK Hynix and Samsung Electronics together make up more than half of the KOSPI's weight, according to Dow Jones. The next test comes within hours: the Fed's decision on Wednesday and Alphabet and Microsoft earnings after the U.S. close.

What's next

Watch whether the fourth quarter tracks toward the roughly 100 trillion won profit one analyst flagged, whether higher capital spending next year eases the shortage expected through 2030, and whether the long-term agreements get extended. This report describes what happened and why markets reacted; it is not a recommendation to buy, sell or hold any security.

Sources

Reuters via SRN News — SK Hynix record profit and $75 billion return plan
Dow Jones via Morningstar — Asian stocks gain as AI optimism returns
Reuters — Stocks get AI lift ahead of Fed decision
TradingKey — KOSPI tops 5,800 as SK Hynix hits record highs

FAQ

How much profit did SK Hynix make in the third quarter?

Operating profit was 83.3 trillion won for July-September, a quarterly record, up more than seven-fold from 11.4 trillion won a year earlier and above the 76.7 trillion won LSEG SmartEstimate.

How big is SK Hynix's shareholder return plan?

About 100 trillion won, roughly $75 billion, for this year — more than 30 trillion won in cash dividends plus more than 60 trillion won in buybacks and cancellations, including 40 trillion won announced in August.

Why did SK Hynix say it is sold out until 2029?

The company said HBM and DRAM are sold out until 2029, HBM demand is double what it can supply, and it expects a chip shortage to continue through 2030 as AI infrastructure demand drives memory prices higher.

How did markets react to SK Hynix earnings?

SK Hynix shares rallied as much as 9.4% in morning trade in Seoul, and the result helped lift the KOSPI and other Asian chip stocks ahead of the Fed decision and U.S. tech earnings on Wednesday.