SK Hynix (000660) Q3 Revenue Hits 104.62T Won, Operating Profit Rises 632%

SK Hynix released third-quarter earnings showing revenue of 104.62 trillion won ($78.86 billion), beating estimates of 98.34 trillion won. Operating profit reached 83.33 trillion won, surpassing the expected 76.72 trillion won. Revenue increased 327.9% year-on-year, while operating profit climbed 632.1% year-on-year. Quarter-on-quarter, revenue grew 31.9% and operating profit rose 37.6%.

The strong results reflect SK Hynix's position as a major supplier of high-bandwidth memory (HBM) chips to Nvidia and its role in the global AI infrastructure expansion. The company benefits from increased technology sector spending on data centers and advanced semiconductors. SK Hynix also announced a plan in August to repurchase and cancel 40 trillion won worth of shares and increased its shareholder return target to over 50% of free cash flow between 2025 and 2027.

However, SK Hynix's U.S. subsidiary Solidigm paused its potential IPO fundraising plans due to recent market volatility and share price movements. SK Hynix will continue evaluating financing options to support Solidigm's growth and enhance shareholder value. This demonstrates a cautious approach amid uncertain market conditions.

These earnings show SK Hynix's strong growth driven by AI demand and chip supply constraints. For investors, this means potential for increased returns through dividends and buybacks, but with some caution due to Solidigm's deferred IPO reflecting current market risks.