SK Hynix Stock Jumps Nearly 6% After First 100 Trillion Won Quarter
SK Hynix inventory rose 5.67% from Tuesday’s near 1.417 million gained in early Seoul buying and selling on Wednesday. The chipmaker had posted report quarterly gross sales of 104.6 trillion gained ($78.9 billion) and forecast reminiscence shortages by 2030.
That outlook runs towards how traders had been pricing chip shares. Goldman Sachs estimated that Korean chip valuations implied a 65% fall in 2027 sector earnings.
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How SK Hynix’s Record Quarter Compares With What Analysts Expected
Third-quarter income reached 104.62 trillion gained, based on the corporate’s outcomes. Operating revenue hit 83.33 trillion gained, an 80% margin.
Both figures beat LSEG SmartEstimates of 98.34 trillion gained and 76.72 trillion gained. On the earnings call, the corporate mentioned common DRAM promoting costs rose by a high-20s proportion from the second quarter.
Net revenue was weaker. It fell 58% from the prior quarter to 39.78 trillion gained, under FnGuide’s forecast of 61.29 trillion gained. The second quarter had included giant good points that analysts tied to its Kioxia stake sale.
The outcomes arrived after a long slide. SK Hynix closed at 1.277 million gained on October 23, about 57% below its 52-week high.
Wednesday’s rebound was broad. Samsung Electronics rose 6.98% from Tuesday’s shut, whereas the KOSPI gained 4.94% to 5,916.72.
Beyond the quarter, SK Hynix used its outcomes to make an extended name on reminiscence provide.
(*100*) SK Hynix Is Betting on a Shortage Until 2030
In its release, SK Hynix mentioned it expects reminiscence demand to maintain outpacing provide till 2030. It pointed to 2 limits on provide.
- Leading-edge chips are technically troublesome to make.
- New factories take a very long time to construct.
On the demand aspect, the corporate expects AI spending to unfold past a small group of huge companies. It sees bizarre companies and nationwide tasks becoming a member of them.
The firm has additionally signed long-term agreements (LTAs) with 14 main prospects. Those offers cowl greater than 50% of its manufacturing capability for 2027 and 2028.
Contract costs observe the market, however solely inside ranges agreed with every buyer. SK Hynix says the setup protects profitability whereas leaving room to regulate.
The remaining capability, lower than half, sits exterior these agreements. A requirement slowdown may due to this fact nonetheless attain earnings.
Alongside the outlook, the corporate plans about 100 trillion gained in shareholder returns for 2026. That features a 14 trillion gained third-quarter dividend, partly funded by good points on its funding in Japanese chipmaker Kioxia.
It additionally authorised a brand new 20 trillion gained buyback. About half will go towards worker compensation and isn’t counted within the 100 trillion gained complete.
Samsung reviews full third-quarter outcomes on Thursday. Its 2027 outlook will present whether or not SK Hynix’s important rival expects the same shortage.
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