- SK hynix, the world's leading HBM (AI memory) maker, posted record Q3 revenue of ₩104.6 trillion (≈ $78B) and operating profit of ₩83.3 trillion (≈ $62B).
- On the earnings call, management said its DRAM and HBM output is effectively sold out for the next three years (through 2029) and that 2027 HBM volume and pricing are already agreed.
- The company plans about ₩100 trillion in shareholder returns for 2026 and dropped plans to list its SSD unit Solidigm in the U.S.
- The stock jumped 10.89% and lifted the KOSPI 6.63% back above 6,000, but it is still about 50% below its June peak.
Why this matters for global investors
SK hynix is the main supplier of the high-bandwidth memory (HBM) used in Nvidia's AI accelerators, so its results are one of the clearest real-time readings of AI data-center spending. It is also the second-largest stock on Korea's KOSPI, so its moves swing the whole Korean market. Outside Korea, investors can follow it through the Seoul listing (000660.KS) or the U.S.-traded ADR (SKHY).
Q3 2026 results at a glance
| Item | Q3 2026 | QoQ | YoY |
| Revenue | ₩104.6T (≈ $78.2B) | +31.9% | +327.9% |
| Operating profit | ₩83.3T (≈ $62.3B) | +37.6% | +632.1% |
| Operating margin | 79.7% | +3.5pp | |
| Net income | ₩39.8T (≈ $29.8B) | −57.6% | ≈ +216% |
| Net cash | ₩98.7T (≈ $73.8B) |
Why did net income fall while operating profit rose? Non-operating items cut ₩32.6T: a ₩11.6T foreign-exchange loss and a ₩22.9T valuation loss on investment assets. In Q2 the opposite happened (net income exceeded operating profit). For SK hynix, operating profit is the cleaner measure of the business.
Earnings call: 5 things management said
- Signed long-term agreements (LTAs) plus deals under negotiation cover essentially all DRAM and HBM output for the next three years.
- LTAs signed with 14 major customers, typically 5 years; they cover over 50% of 2027–2028 capacity.
- Customer HBM requests are more than twice what SK hynix can supply.
- Caveat: LTA prices reflect market conditions within agreed ranges — volume is locked in, price is not fully fixed. Deposits back the contracts.
- HBM4 is expected to overtake HBM3E in both shipments and revenue in Q4.
- 2027 HBM volume and pricing negotiations are complete, reflecting HBM4's higher value.
- HBM4 yields beat plan; HBM4E samples were delivered in Q2; custom HBM projects are under way.
- Q4 bit shipments: DRAM up mid-20s %, NAND up mid-single digits % QoQ.
- 2027 demand growth: DRAM mid-20s %, NAND high-teens %.
- Q3 average selling prices rose high-20s % (DRAM) and mid-20s % (NAND).
- ₩30T+ in cash dividends and ₩60T+ in buybacks/cancellations (including the ₩40T buyback announced in August, now completed and to be cancelled).
- Q3 dividend: ₩20,000 per share (≈ $15), including a ₩10,000 special dividend from Kioxia investment gains.
- Commitment to return at least 50% of free cash flow going forward.
- Spending will increase for advanced nodes and the new Yongin fab; clean rooms will open in phases and tool-ins will follow demand.
- Plans for a pre-IPO and U.S. listing of Solidigm (SSD subsidiary) have been halted, removing a governance concern raised by Korean regulators.
Valuation: cheap, or peak earnings?
| Metric | Value |
| Market cap (Oct 28 close) | ≈ ₩1,086T (≈ $812B) |
| Trailing 4-quarter operating profit | ≈ ₩200.7T → about 5.4× |
| Q3 operating profit × 4 | ≈ ₩333T → about 3.3× |
On paper the stock looks very cheap. But memory is a cyclical industry, and cyclical stocks often look cheapest exactly when earnings peak. The stock fell about 61% from its June high to the Oct 23 low on that fear. The "sold out through 2029" message is management's answer to it.
Chart check
| Level | Price (₩) | Note |
| June peak | 2,987,000 | All-time high |
| 60-day MA / Oct 13 gap | 1,554,000–1,609,000 | Next resistance zone |
| Oct 28 close | 1,487,000 | Sitting on the 20-day and 200-day MAs (~1.49M) |
| Oct 15 gap (filled today) | 1,332,000–1,402,000 | First support zone |
| Oct 23 low | 1,171,000 | Recent bottom |
Trend strength (ADX 29) still favors sellers, but the gap is closing fast (+DI 25.8 vs −DI 33.1). RSI recovered from oversold (28.6 on Oct 22) to a neutral 49.7. Short term, a daily close above ₩1.61M would signal the downtrend is ending; a close below ₩1.33M would erase today's rebound.
What to watch next
- Oct 29 (Seoul): Samsung Electronics Q3 results and earnings call; the U.S. Fed decision (early Oct 29, Seoul time).
- Mid-Nov: SK hynix quarterly report — Q3 cash flow and FX loss details.
- Late Nov: Nvidia earnings and Big Tech AI capex plans.
- Risks: memory price cycle, industry-wide capacity expansion, Chinese DRAM makers (CXMT), won strength.
SK hynix delivered record numbers and unusually long demand visibility, plus a shareholder return of roughly 9% of its market cap. The open question is not this year's profit but how long memory prices stay high. Watching contract prices and AI capex is more useful than the headline profit number.
Past quarterly figures from DART filings (consolidated). Prices and indicators from Korea Investment & Securities daily data; closing price per Korea Exchange. This post is for information only and is not a recommendation to buy or sell any security.
