SK Hynix beats third-quarter profit forecasts — CNBC

South Korean chipmaker SK Hynix exceeded analysts’ expectations for revenue and operating profit in the third quarter, which covered July through September. CNBC reports that the company’s revenue amounted to 104.62 trillion won, while operating profit reached 83.33 trillion won.

Results exceed expectations

According to LSEG SmartEstimates, analysts expected SK Hynix to post revenue of 98.34 trillion won and operating profit of 76.72 trillion won. SmartEstimates gives greater weight to forecasts by analysts who have more consistently made accurate estimates.

Year on year, the company’s revenue increased by 327.9%, while operating profit rose by 632.1%. Compared with the previous quarter, revenue grew by 31.9%, while operating profit increased by 37.6%.

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Demand for AI memory

SK Hynix is one of Nvidia’s key suppliers of high-bandwidth memory (HBM) chips. The company has become one of the beneficiaries of the global expansion of artificial intelligence infrastructure, as technology companies increase spending on data centers and advanced processors.

In August, SK Hynix announced plans to repurchase and cancel its own shares worth 40 trillion won. The company also raised its target shareholder payout level to more than 50% of cumulative free cash flow for 2025–2027.

Last week, SK Hynix’s U.S. subsidiary, Solidigm, announced that it had stopped considering options for raising funds ahead of an initial public offering and conducting an IPO. The company cited market volatility and trends in share-price movements, stating that it would continue to assess the timing, scale and methods of financing investments for Solidigm’s development.