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Chipmaker SK Hynix’s Profit Surges More Than Sevenfold on Sustained AI Demand

South Korean chipmaker SK Hynix more than septupled its year-on-year profit to a record 83.3 trillion won. The company continues to capitalize on booming demand for artificial intelligence (AI), which has driven up memory chip prices. SK Hynix announced the results in a press release today and confirmed it will distribute a special dividend to investors.

Beat Estimates and Record Payouts: SK Hynix to Return 100 Trillion Won to Investors

The quarterly performance beat analysts’ already high estimates, with revenue surging 328 percent year-on-year to 104.6 trillion won.

“We expect the momentum of AI investments to continue, as customer spending on artificial intelligence leads to broader adoption of AI services and tangible business results, while the spectrum of companies investing in AI continues to widen,” said Chief Financial Officer Kim Woo-hyun.

“Given that the fourth quarter is traditionally stronger, operating profit could reach nearly 100 trillion won,” noted analyst Ryu Young-ho of NH Investment & Securities. SK Hynix stated that it will return approximately 100 trillion won to shareholders this year. Through a special dividend,the company will distribute most of the gains realized from its investment in Japan’s Kioxia.

HBM Dominance and Nvidia Demand Power South Korea’s Economic Growth

According to data from Nomura, SK Hynix is the global leader in High Bandwidth Memory (HBM) chips—advanced memory essential for AI processors – controlling nearly half of the global market. One of the group’s key customers is U.S. tech giant Nvidia. According to Reuters, Nvidia expects demand for memory chips to outstrip supply through 2030.

The broader semiconductor boom is providing a major lift to South Korea’s economy. According to official data released on Tuesday, third-quarter Gross Domestic Product (GDP) expanded by 1.0 percent quarter-on-quarter, with the central bank estimating that roughly half of this economic growth was driven by the semiconductor industry.