SK Hynix posts record quarterly results and plans more capacity spending
Revenue rose 32% and operating profit 38% from the previous quarter. SK Hynix plans at least 40 trillion won in capacity spending for 2026.
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Revenue rose 32% and operating profit 38% from the previous quarter. SK Hynix plans at least 40 trillion won in capacity spending for 2026.
SK Hynix, the South Korean memory-chip maker that supplies Nvidia, posted record quarterly revenue and operating profit and plans higher capacity spending in 2026. The company also says its memory production is effectively sold out through 2029, while its chief financial officer expects supply constraints to persist through 2030.
| Measure | Total | US dollar equivalent | Quarter-on-quarter growth |
|---|---|---|---|
| Revenue | 104.6 trillion won | $78.1 billion | 32% |
| Operating profit | 83.3 trillion won | $62.1 billion | 38% |
The company attributed its record performance to strong demand for advanced memory products, including high-bandwidth memory (HBM), which it supplies to Nvidia. HBM uses vertically stacked memory chips and works alongside superintelligence (SI) accelerators, specialised computing chips.
The memory-chip maker reported preliminary third-quarter operating profit of 83.33 trillion won. Investors next await major technology companies’ earnings to assess the returns on heavy spending.
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On its 28 October earnings call, SK Hynix said production of both dynamic random-access memory (DRAM), a type of computer memory, and HBM was effectively sold out through 2029, 9to5Google said. The company also said long-term agreements already covered more than 50% of its total production capacity for 2027 and 2028.
The chief financial officer expects memory supply to remain unable to keep pace with demand through 2030. The CFO cited the difficulty of introducing advanced manufacturing processes and the time needed to build new production facilities as reasons the company expects trouble fully meeting customers’ near-term volume requirements.
The bookings describe commitments for SK Hynix’s own production; the 2030 outlook is the company’s forecast of supply falling short of demand. If that forecast holds, electronics companies and data-centre operators would face prolonged pressure on supplies.
Fortune said the memory shortage has squeezed electronics manufacturers’ profit margins, making it harder for smartphone, PC and game-console makers to avoid raising prices.
SK Hynix plans to increase spending on production capacity in 2026 from its 2025 level. The 2026 amount is planned spending, not completed expenditure.
| Year and status | Capacity spending | US dollar equivalent |
|---|---|---|
| 2025 spending | Roughly 30 trillion won | $23 billion |
| 2026 planned spending | At least 40 trillion won | $30 billion |
The Nasdaq recorded its worst session since June on October 22, while buying of US government bonds pushed the 10-year yield down to 4.95%.
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Fortune cited renewed Middle East attacks and $112 oil as apparent contributors to the selling, with US futures lower ahead of New York’s opening.
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Update ·
SK Hynix says memory production is effectively sold out through 2029, and its CFO expects supply constraints through 2030 because advanced manufacturing processes and new factories take time to implement.