SK Hynix's third-quarter revenue rose 328% year over year to 104.62 trillion won ($77.9 billion), beating the 98.34 trillion won analyst average, mainly on higher memory prices. Operating profit jumped 632% to 83.33 trillion won ($62 billion), with gross margin at 86% and operating margin at 80%. The company announced a 20 trillion won ($14.9 billion) buyback and a 14 trillion won ($10.4 billion) dividend, and plans to return 50% of its cumulative 2025–2027 free cash flow to shareholders. It said HBM4 prices will rise next year and that HBM demand is more than double its supply. The author argues the stock still looks attractive at 4.5 times forward earnings for 2027, while acknowledging that memory is cyclical.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
earningssemiconductorsartificial intelligenceSouth Koreashare buybacks
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/30/2026 | 204.81 |
| Change that session | -4.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- SK Hynix Shares Spike in Seoul as Q3 Profit Jumps More Than 7-Fold: Memory Giant Plans $75 Billion in Shareholder Returns
SK hynix (NASDAQ:SKHY) reported a record third-quarter operating profit of KRW 83.33 trillion ($62.55 billion), up 632% year-on-year and above the KRW 76.7 trillion LSEG SmartEstimate, while revenue rose 328% to KRW 104.62 trillion ($78.52 billion). The company credited higher memory prices and AI server demand, and said it has signed long-term agreements with 14 major customers, typically running five years, covering more than 50% of its production capacity for 2027 and 2028. It plans to return about KRW 100 trillion ($75 billion) to shareholders this year, including at least KRW 30 trillion in dividends and at least KRW 60 trillion in buybacks. Shares in Seoul rose 6.64% to KRW 1,430,000, while Nasdaq-listed ADRs closed 1.92% higher at $145.36 and gained 2.78% to $149.40 in extended trading.
- Samsung Electronics third-quarter profit in line with estimates amid rising demand for AI memory chips
Samsung Electronics reported third-quarter operating profit broadly in line with analysts' expectations, as demand for advanced memory chips used in AI applications kept growing. Revenue reached 195.25 trillion won (LSEG SmartEstimates expected 195.79 trillion won), and operating profit reached 107.44 trillion won (expected 107.66 trillion won). Year-on-year, revenue rose 126.88% and operating profit rose 783.11%, while revenue increased 13.85% from the previous quarter. During the quarter, Samsung and five affiliates announced a combined $1 billion investment in KKR-backed Helix Digital Infrastructure, with Samsung contributing $500 million. Samsung also partnered with French AI startup Mistral AI to apply AI technologies across its semiconductor operations, including chip design and manufacturing, and led Mistral's Series D funding round.
- SK Hynix Just Delivered Great News for Micron Investors
Micron (MU) is up 240% this year but down more than 20% from its peak after its fiscal third-quarter earnings report. SK Hynix's third-quarter revenue rose 328% year on year and 32% sequentially, with average DRAM selling prices up 20% sequentially and DRAM bit growth of 10%. SK Hynix said it expects demand to exceed supply through 2030, that it was virtually sold out through 2029, and that the AI data center infrastructure market could grow 40% annually through 2030. For next year it expects DRAM bit growth in the mid-20% range and NAND growth in the high-teens. The author argues investors may be overly pessimistic about Micron, which trades at a forward P/E of less than 6.
- Why SK Hynix Stock Popped Today
SK Hynix shares rose about 10.5% in the first 10 minutes of Wednesday's trading after its Q3 results beat expectations. Operating profit reached 83.3 trillion won (about $62.1 billion), above the 77.5 trillion won analysts expected, for an 80% operating margin. Revenue surged 328% year over year to 104.6 trillion won, and net income rose 216% to 39.8 trillion won ($29.7 billion), a 38% net margin, driven largely by HBM4 products that the company expects to become its mainstream product from Q4. Management said it has secured long-term agreements covering more than 50% of expected production for 2027–2028. The article says that, trading at under 8 times earnings, SK Hynix looks like a long-term AI winner.
- Tech stocks soar as SK hynix adds to rising AI confidence
Asian tech stocks surged after strong SK hynix earnings boosted AI optimism ahead of results from Microsoft and Alphabet. SK hynix's third-quarter operating profit soared 632% to US$62.8 billion (€54.2 billion), driven by demand for advanced semiconductors, and the firm said it had posted record revenue and operating profit for six straight quarters. Anthropic's IPO filing showed first-half revenue surged about 1,300%, and Broadcom, Citi, Blackstone and Morgan Stanley announced a US$63 billion (€54.4 billion) financing structure for Anthropic's new capacity. SK hynix shares rose almost 9%, Samsung more than 8%, Korea's Kospi more than 6%, and Japan's Nikkei 225 more than 1%. The Fed is expected to hold rates steady, but markets are pricing in a rate hike in December, while crude prices jumped more than 1% as Israel's election results came in.
- The AI Buyback Wave: Rule Breaker Signal or Noise?
SK Hynix said it will buy back about $22 billion of its stock this year, in addition to an earlier program, after its shares fell about 24% in the month before it reported a sixth straight quarter of record sales and profits. Nvidia announced a new $150 billion buyback that brings its total authorization to $235 billion, and Micron disclosed that its board authorized up to $35.16 billion in repurchases. The article notes that an authorization is only a ceiling and does not commit a company to buying, and that buybacks offsetting stock paid to employees may leave the share count little changed. It argues that whether these buybacks signal management confidence depends on actual purchases and on cash flow from still-growing businesses, since memory chip cash piles tend to be largest near cyclical peaks.
Related markets
Latest news
- America is doing better than you think. Your algorithm is just hiding it.
The bottom half of Americans has more than doubled its net worth since 2019, though this is hard to notice while scrolling social media.
- Beyond Nvidia And Hyperscalers: Beth Kindig Sees A $1 Trillion AI Infrastructure Opportunity For These Stocks
IO Fund's Beth Kindig says AI infrastructure demand is increasingly coming from enterprises, neoclouds and sovereign AI customers rather than just the largest cloud providers, which could benefit makers of servers, CPUs, networking, storage and cooling. Nvidia's ACIE business reached $40.3 billion in fiscal Q2, up 138.5% year over year versus 101.2% for hyperscalers, and Kindig estimates it could overtake hyperscaler revenue within two to six quarters. Citing Dell's forecast of 200 gigawatts of AI data center growth through 2030, worth over $1 trillion, she sees Dell and Super Micro Computer as direct beneficiaries. She also highlights rack-scale CPU platforms from Nvidia, AMD and Arm, and liquid cooling, which TrendForce expects to reach 59% penetration in 2027 from 6% in 2023.
- Why Have Profits at Some Banks Fallen Sharply?
Profits at several banks fell sharply after rate-cut programs for individuals and businesses, along with higher risk provisions. SACOMBANK's 9-month pre-tax profit reached nearly 5,900 billion dong, down 46% year over year, though service income rose about 3.5 times and operating expenses fell 19.3%. Eximbank's pre-tax profit was 864 billion dong, down 58%, as it raised credit risk provisions to 997 billion dong and focused on asset quality. Other banks also saw steep declines, including Saigonbank down over 78%, BVBank down 19%, Kienlongbank down nearly 13% and PGBank down 10.5%. The article cites a sudden rise in provision costs, narrowing net interest margins (NIM) and lower non-interest income as the main reasons.
- Alphabet Gets Kicked Out of the $4 Trillion Club After Its Record $505 Billion Drop. Here's What History Says Could Come Next
Alphabet fell 12.6% in one session, erasing $505 billion in market value, its largest nominal loss and largest one-day percentage drop on record. The stock slipped out of the $4 trillion club, and Microsoft overtook it as the world's third most valuable company behind Apple and Nvidia. The article says Alphabet's free cash flow yield has plunged to 0.6% as heavy AI spending, from in-house chips to Gemini models and Google Cloud, weighs on cash flow, making the stock far riskier than before. In 2022, by contrast, its FCF yield was 5.6% at a split-adjusted close of $83.43 with a P/E of 16.6, while capex expected to rise in 2027 makes traditional valuation harder. Investors without strong conviction may keep it on a watch list while waiting to see whether AI spending pays off.
- Top Wall Street analysts are bullish on these 3 stocks for the long haul
The article, based on TipRanks' analyst rankings, highlights three stocks favored by top Wall Street analysts for the long term. Bank of America's Koji Ikeda reiterated a buy rating on Datadog and raised his price target to $335 from $305, estimating Q3 FY26 revenue growth of 28.7% versus the Street's consensus of 29.1%, while flagging concentration risk from large customers. Morgan Stanley's Joseph Moore reaffirmed a buy rating on Nvidia with a $300 price target after attending GTC Berlin, viewing TSMC 3 nm wafer supply as the biggest challenge but expecting it to ease over time. Needham's Ryan Koontz reiterated a buy rating on SpaceX with a $250 price target after its Q3 AI revenue rose to $7.56 billion from $813 million a year earlier.
- The midterm election could reshape the muni bond market. Here's what investors need to know
The midterm election outcome could affect the municipal bond market, especially at the state level, where several ballot measures would change tax laws. Blue states are pursuing graduated income taxes on high earners, while red states are cutting property taxes, and California's proposed one-time levy would equal 5% of the wealth of taxpayers with at least $1 billion in assets. Dan Close of Nuveen said tax increases would make the muni tax exemption more valuable and could push bond prices higher as investors seek shelter, while Florida's proposal would raise a property tax exemption that does not apply to school taxes to $150,000 in 2027 and $250,000 by 2028. Municipal bond issuance totaled $473.8 billion through September, up 7.8% from a year earlier, and Schwab's Cooper Howard views supply as the biggest issue coming out of the election.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.