Tech stocks soar as SK hynix adds to rising AI confidence

SK Hynix reported a 7x increase in operating profit to 83.3 trillion won ($62.4B) for Q3, driven by AI-driven demand for memory chips. The company's shares rose 2.7% initially. SK Hynix expects strong demand to continue through 2030, with HBM chips being a key growth driver.

Asian stocks rallied, led by South Korea's KOSPI, which surged over 6% after SK Hynix (KS:000660) reported a 631% increase in Q3 operating profit. Samsung Electronics (KS:005930) shares also rose over 8%. Investors await the U.S. Federal Reserve's interest rate decision and earnings from Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT).

SK hynix reported record Q3 2026 revenue of KRW 104.6 trillion, an 80% operating margin, and a KRW 100 trillion shareholder return plan. DRAM and HBM demand drove growth, with long-term agreements securing over 50% of 2027-2028 capacity. Non-operating losses reduced net income. The company expects continued demand growth and increased CapEx in 2027.

SK Hynix stock rose 5.67% after reporting record quarterly sales of 104.6 trillion won, beating estimates. Operating profit was 83.33 trillion won, while net profit fell 58% to 39.78 trillion won. The company forecasts memory shortages until 2030, citing supply constraints and growing AI demand.

SK Hynix (000660) predicts a memory shortage through 2030, with DRAM demand growing mid-20% and NAND Flash high-20% next year. The company cites AI infrastructure investment driving demand. Q3 DRAM ASP rose high-20% QoQ, while NAND Flash prices also surged. SK Hynix plans a 20 trillion won share buyback and expects HBM4 to boost earnings.

SK Hynix, a South Korean chipmaker, plans to pay $75.4 billion to shareholders after a record Q3 operating profit of 83.3 trillion won, up from 11.4 trillion won a year earlier. The company's revenue grew 328% to 104.6 trillion won. The payout includes 30 trillion won in dividends and 60 trillion won for share buybacks and cancellations.