SK Hynix Plans $75 Billion in Shareholder Returns After Blockbuster Earnings — Update

By Kwanwoo Jun

South Korean memory-chip titan SK Hynix plans to return a total of $75 billion to shareholders this year as it reaps a windfall from surging demand for the hardware that powers artificial-intelligence computing.

The world's second-largest memory chip maker delivered another set of blockbuster earnings on Wednesday, with net profit more than tripling in the third quarter.

Revenue and operating profit both hit record highs for a sixth straight quarter.

Seeking to boost valuations and investor confidence, SK Hynix plans to return a total of 100 trillion won, equivalent to $75.39 billion, to shareholders, it said. That would include more than 30 trillion won in dividends and a further 20 trillion won in share buybacks, on top of its already completed 40 trillion won buyback program announced in August.

The move comes as the Korean company, a supplier of high-bandwidth memory products to AI powerhouse Nvidia, has become one of the biggest beneficiaries of the global AI investment boom.

SK Hynix executives said on an earnings conference call that the memory-chip shortage is expected to persist through 2030. The company's long-term contracts with customers cover more than 50% of its total production capacity for 2027 and 2028. They expect higher-end HBM4 products to lead shipments in the fourth quarter of 2026.

"The company's DRAM and high-bandwidth memory supply for the next three years, through 2029, is effectively sold out," said Joon Deok Park, head of SK Hynix's DRAM marketing.

Consecutive quarters of strong earnings have prompted SK Hynix to pledge to return more than 50% of its cumulative free cash flow to shareholders over the three years through 2027.

Net profit for the three months ended September jumped to 39.776 trillion won from 12.598 trillion won a year earlier, but fell short of street views. Analysts had expected 61.418 trillion won, according to a FactSet-compiled consensus estimate.

Revenue hit a record, more than quadrupling to 104.615 trillion won. Operating profit reached 83.334 trillion won, also a record high.

Shares of the company were 7.6% higher in early trading Wednesday, after tumbling in recent months.

In the third quarter, the company's shares shed 33% amid lofty investor expectations for profitability and growing skepticism about the sustainability of AI infrastructure spending.

SK Hynix's share price has more than halved from its peak in June amid a global selloff in chip stocks. Last week, the company halted its review of a potential U.S. listing of flash-memory subsidiary Solidigm, citing unfavorable market conditions and recent share-price trends.

Some market analysts remain bullish on the stock despite its recent slump, pointing to tight supply and strong demand for AI memory chips.

SK Hynix said earlier that it expects capital investment to rise to at least 40 trillion won this year, from roughly 30 trillion won in 2025, as it continues to expand production capacity.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

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October 27, 2026 22:06 ET (02:06 GMT)