SK Hynix third-quarter profit beats estimates on AI memory demand

Revenue and operating profit surge on sales of high-bandwidth memory chips to Nvidia

By LineZotpaper AI staff

Published28 October 2026

Read Time2 min

Sources2 outlets

Illustration: SK Hynix third-quarter profit beats estimates on AI memory demand

South Korean chipmaker SK Hynix reported third-quarter results that sharply beat analyst estimates, driven by surging demand for its high-bandwidth memory chips used in AI data centers.

SK Hynix, a key supplier of HBM chips to Nvidia, on Wednesday posted revenue of 104.62 trillion won ($78.86 billion) for the July-to-September period, compared with an LSEG SmartEstimate of 98.34 trillion won. Operating profit came in at 83.33 trillion won, above the 76.72 trillion won expected.

Revenue rose 327.9 per cent from a year earlier, while operating profit climbed 632.1 per cent year on year. Compared with the previous quarter, revenue rose 31.9 per cent and operating profit surged 37.6 per cent.

The company has emerged as one of the biggest beneficiaries of the global AI infrastructure buildout, as technology companies ramp up spending on data centers and advanced processors.

In August, SK Hynix announced plans to repurchase and cancel 40 trillion won worth of its own shares, while raising its shareholder return target to more than 50 per cent of cumulative free cash flow generated between 2025 and 2027.

Last week, the company said its US subsidiary Solidigm would halt its review of potential pre-IPO fundraising and IPO options, citing market volatility and share price trends. SK Hynix said it would continue to assess investment timing, scale and financing options to support Solidigm's growth and enhance shareholder value.

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SK Hynix third-quarter revenue and operating profit, actual vs LSEG estimates

trillion won

Estimates are LSEG SmartEstimates for the July-to-September period. Source: SK Hynix and LSEG SmartEstimate (via CNBC)

Analysis

Why This Matters

SK Hynix's results are a leading indicator of AI infrastructure spending, which continues to drive demand for advanced memory chips.
The earnings beat signals sustained strength in the AI hardware supply chain, benefiting companies like Nvidia and its suppliers.
The company's share buyback and increased shareholder return target suggest confidence in future cash flows.

Background

SK Hynix is a major South Korean semiconductor company and a key supplier of high-bandwidth memory chips to Nvidia, which are critical for AI and data center applications. The company has benefited significantly from the global AI buildout, as tech companies invest heavily in data centers and advanced processors.

Key Perspectives

SK Hynix: The company reported strong beats on revenue and operating profit, driven by AI memory demand. It is also pursuing a large share buyback and has raised its shareholder return target. Market analysts: LSEG SmartEstimates, which weight forecasts from more consistently accurate analysts, showed expectations that were sharply exceeded. SK Hynix (on Solidigm): The company halted a review of pre-IPO fundraising and IPO options for its US subsidiary Solidigm, citing market volatility and share price trends, and said it would continue to assess investment timing and financing options.

What to Watch

The pace of AI infrastructure investment by major tech companies in the coming quarters.
Whether SK Hynix resumes IPO plans for Solidigm if market conditions improve.
The impact of any shifts in demand for HBM chips from Nvidia and other AI chipmakers.

Sources

Checked

12 claims in this story checked against 1 source: 10 supported.

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SupportedSK Hynix’s third-quarter profit beat estimates on AI memory demand.Tech: “SK Hynix third-quarter profit sharply beats estimates on AI memory boost.”
Partly supportedRevenue and operating profit surged on sales of HBM chips to Nvidia.Tech: “SK Hynix, a key supplier of high-bandwidth memory, or HBM, chips to Nvidia, has emerged as one of the biggest beneficiaries of the global AI infrastructure buildout, as technology companies ramp up spending on data centers and advanced processors.”
Partly supportedThe results sharply beat analyst estimates, driven by surging demand for HBM chips used in AI data centers.Tech: “SK Hynix third-quarter profit sharply beats estimates on AI memory boost.”
SupportedRevenue was 104.62 trillion won, above the 98.34 trillion won estimate.Tech: “Revenue: 104.62 trillion won ($78.86 billion) vs. 98.34 trillion won expected”
SupportedOperating profit was 83.33 trillion won, above the 76.72 trillion won estimate.Tech: “Operating profit: 83.33 trillion won vs. 76.72 trillion won expected”
SupportedRevenue rose 327.9% year on year.Tech: “Revenue rose 327.9% from a year earlier”
SupportedOperating profit rose 632.1% year on year.Tech: “operating profit climbed 632.1% year on year.”
SupportedRevenue rose 31.9% from the previous quarter.Tech: “Compared with the previous quarter, revenue climbed 31.9%”
SupportedOperating profit rose 37.6% from the previous quarter.Tech: “while operating profit surged 37.6%.”
SupportedIn August, SK Hynix announced plans to repurchase and cancel 40 trillion won of its shares.Tech: “In August, SK Hynix had announced plans to repurchase and cancel 40 trillion won worth of its own shares”
SupportedSK Hynix raised its shareholder return target to more than 50% of cumulative free cash flow generated between 2025 and 2027.Tech: “while raising its shareholder return target to more than 50% of cumulative free cash flow generated between 2025 and 2027.”
SupportedLast week, SK Hynix said Solidigm would halt its review of potential pre-IPO fundraising and IPO options, citing market volatility and share price trends.Tech: “Last week, SK Hynix announced that its U.S. subsidiary Solidigm would halt its review of potential pre-IPO fundraising and IPO options, citing market volatility and share price trends.”