SK Hynix reported record third-quarter operating profit of KRW 83.3 trillion as demand for memory chips tied to AI infrastructure remained strong. The company also said it will provide an additional KRW 60 trillion to shareholders in the current fiscal year through buybacks and dividends.
AI infrastructure demand lifted quarterly results
According to ABMedia, demand from data centers and AI developers supported SK Hynix in the third quarter, with operating profit reaching KRW 83.3 trillion, a record for the company and more than 7% above market expectations.
Macquarie research, cited in the report, said memory now accounts for one-third of AI data center-related spending. SK Hynix has been working closely with Nvidia and shifting production toward high-bandwidth memory, or HBM, a move that has also tightened supply in conventional memory products.
Counterpoint Research said HBM prices have been rising, while prices for traditional DRAM and NAND have also climbed quickly. It expects the earnings growth trajectory to continue through at least 2027.
Company adds KRW 60 trillion in shareholder returns
On the back of strong financial performance and gains from the disposal of its Kioxia stake, SK Hynix said it will return an additional KRW 60 trillion to shareholders this fiscal year through treasury stock buybacks and dividends.
The funds mainly come from profits secured earlier this year when the company sold shares in Japanese memory manufacturer Kioxia. The report said the move reflects confidence in future cash flow and offers fundamental support for the stock price in the current global macro environment. SK Hynix shares rose more than 5% on the day.
Component shortages may last until 2030
Management said shortages of key components needed for Nvidia accelerators are expected to continue until at least 2030. At the same time, concerns over possible overinvestment in AI infrastructure have affected the capital markets plans of one of the company’s subsidiaries.
SK Hynix has shelved an IPO plan for Solidigm that was valued at about $10 billion. Bloomberg reported that Solidigm is now in talks with the U.S. Department of Commerce to assess a possible $45 billion investment in a new wafer fabrication plant in the United States.
Even with the IPO on hold, the report said the development shows Solidigm’s long-term supply chain planning has not stopped because of short-term capital market swings.