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SK Hynix third-quarter profit sharply beats estimates on AI memory boost
CNBC • • business
Key Points:
- South Korean chipmaker SK Hynix reported record third-quarter revenue of 104.62 trillion won ($78.86 billion) and operating profit of 83.33 trillion won, significantly surpassing analyst expectations and marking year-on-year increases of 327.9% and 632.1%, respectively.
- The company announced a major shareholder return plan totaling about 100 trillion won, including at least 30 trillion won in cash dividends and 60 trillion won in share buybacks and cancellations, with a third-quarter dividend of 14 trillion won approved.
- SK Hynix expects its next-generation high-bandwidth memory product, HBM4, to outperform HBM3E in shipments and revenue in the fourth quarter as production ramps up at its Cheongju facility.
- The chipmaker has secured long-term contracts covering over 50% of its production capacity for 2027 and 2028, anticipates memory demand to exceed supply through 2030, and plans significant investment increases next year.
- SK Hynix's U.S. subsidiary Solidigm has paused its IPO and fundraising review due to market volatility but will continue evaluating financing options to support growth and shareholder value.
