SK Hynix posts record quarterly profit, sees AI driving memory chip demand

By Axel Miller | 28 Jan 2026

SK Hynix reported a record quarterly profit as AI demand propelled memory chip sales. (AI Generated)

Summary

South Korea’s SK Hynix reported a record-breaking fourth-quarter operating profit of 19.2 trillion won ($13.5 billion), trouncing expectations as surging AI demand lifted prices for both advanced and conventional memory chips. The company also announced its largest ever share cancellation and outlined plans for further investment tied to AI infrastructure, boosting its stock in after-hours trading.

Strong earnings reflect AI-fueled memory demand

SEOUL — SK Hynix posted a 137% year-on-year surge in fourth-quarter operating profit to 19.2 trillion won ($13.5 billion), comfortably above the 17.7 trillion won consensus forecast. The results were propelled by robust global demand for memory chips tied to artificial intelligence infrastructure.

The company said skyrocketing prices for High Bandwidth Memory (HBM) and commodity DRAM and NAND chips — driven by purchases from data centers, cloud service providers, and AI hardware manufacturers — accounted for much of the performance. HBM sales more than doubled in 2025, and SK Hynix now commands an approximately 61% share of the HBM market, according to Macquarie Equity Research.

Shares rallied about 9% in after-hours trading following the results and the announcement of a major share-cancellation programme.

Share cancellation and U.S. expansion plans

SK Hynix said it would cancel 15.3 million treasury shares, worth roughly 12.2 trillion won (about $8.5 billion) — its largest such move to date — aimed at enhancing shareholder value.

The company also unveiled plans to invest $10 billion in a new U.S. entity focused on AI-related memory and infrastructure, part of broader efforts to strengthen its position in global AI supply chains. This mirrors media reports of SK Hynix considering expansion of AI investment units in the United States.

AI boosts broader memory chip market

Demand associated with artificial intelligence is lifting prices across the memory sector. According to industry data, contract prices for 16GB DDR5 DRAM more than quadrupled year-on-year in the last quarter, and a research group forecasts another 55%–60% rise in the current quarter.

While AI-specific products like HBM remain the focus, SK Hynix said standard PC and smartphone memory sales are expected to lag overall market growth as chipmakers prioritise customers building AI data centres.

Competitive outlook and risks

Analysts caution that the memory landscape could become more competitive in 2026. Samsung Electronics is poised to launch its next-generation HBM4 chips for Nvidia’s platforms, a move that may erode SK Hynix’s dominant HBM share to about 53%, according to research forecasts.

SK Hynix is scheduled to brief investors on its fourth-quarter results later this week, providing further details on growth projections and capital allocation for its AI-focused strategy.

Why This Matters

SK Hynix’s record quarterly profit highlights the structural shift in the memory chip market driven by the artificial intelligence boom. As demand for AI infrastructure expands, memory products like HBM — essential for AI accelerators — have become highly profitable, lifting export revenues and driving industry pricing power.

The share cancellation and U.S. investment plans signal confidence from management and support for shareholder returns, while positioning SK Hynix to compete globally in next-generation memory technologies. The results also reflect broader industry dynamics, where supply constraints and strategic prioritisation of AI-related demand are reshaping market share and pricing across DRAM, NAND, and HBM segments.

FAQs

Q1. What was SK Hynix’s Q4 operating profit?

SK Hynix posted 19.2 trillion won ($13.5 billion) in operating profit for Q4 2025, a 137% year-on-year increase that exceeded forecasts.

Q2. What drove the record profit?

Strong demand for AI-related memory chips — especially HBM — combined with rising prices for DRAM and NAND, drove the profit surge.

Q3. How is SK Hynix performing in the HBM market?

The company holds roughly 61% of the global HBM market, with sales more than doubling last year.

Q4. What is the share cancellation plan?

SK Hynix plans to cancel about 15.3 million treasury shares worth about 12.2 trillion won, equivalent to roughly 2.1% of total shares outstanding, to enhance shareholder value.