SK Hynix profit surges on relentless appetite for AI memory

Published Wed, Jan 28, 2026 · 05:51 PM

[SEOUL] SK Hynix reported its strongest quarterly results to date, underscoring the depth of an artificial intelligence (AI) wave that has triggered an unprecedented surge in memory demand. 

Its operating profit more than doubled to 19.2 trillion won (S$17 billion) in the December quarter, beating the 16.7 trillion won average of analysts estimates. The company’s revenue climbed to 32.8 trillion won.

Its Korean shares were up more than 6 per cent in extended trading.

Once defined by sharp boom-and-bust cycles, the memory business is now delivering consistent profits that would have been improbable just a few years ago, lifting valuations across the sector.

The shares of SK Hynix, the leading supplier of high-bandwidth memory (HBM) for Nvidia’s AI accelerators, have roughly tripled since the start of September.

Samsung Electronics, which is trying to catch up with its smaller rival in the market, is slated to report its full quarterly results on Thursday (Jan 29). 

On Wednesday, SK Hynix also disclosed plans to cancel about US$8.6 billion worth of shares held in its treasury in February, as part of its broader efforts to boost shareholder returns.

And it reiterated that it is considering a US listing, though it had made no decision on that front. The top executives are slated to address analysts on a conference call on Thursday morning, just as Samsung unveils its own numbers.

SK Hynix’s strong performance reflects the extent of demand for HBM 3 extended (HBM3E), the current cutting-edge version used by Nvidia and major cloud operators.

The Korean company is the exclusive supplier of HBM3E for Microsoft’s custom AI accelerator, the Maia 200, based on a South Korean media report. 

Both Korean chipmakers are now vying for the certification to sell the next-generation HBM4 to the world’s most valuable company.

This pivot towards premium AI silicon is cannibalising the production of conventional memory. The resulting supply shortfall in both dynamic random access memory (DRAM) and NAND is handing manufacturers, such as SK Hynix, immense pricing power. 

Richard Clode, a portfolio manager on the global technology team at Janus Henderson, said that the current memory shortage will likely extend.

This is partly because of the strong demand for the next-generation HBM memory, which consumes more wafer capacity and has a tight supply.

“There are no easy wins and levers from a supply perspective to meet this new demand driver,” he said. Against consumer electronics companies, “hyperscalers and AI customers are looking at what they are willing to pay for memory through a very different lens”.

Citigroup analysts Peter Lee, Jayden Oh and Josh Yang wrote in a report that the average selling price of DRAM is expected to climb 120 per cent, while that of NAND is estimated to climb 90 per cent this year. They also lifted their price targets for SK Hynix by 56 per cent and for Samsung by 20 per cent. BLOOMBERG