SK hynix record earnings propel South Korean technology stocks higher

Focal Brief

South Korean technology shares surged on October 28 after SK hynix reported record third-quarter revenue and operating profit, reinforcing investor confidence that demand for high-bandwidth memory used in artificial-intelligence infrastructure remains strong.

Focal Facts

• SK hynix reported preliminary third-quarter revenue of 104.62 trillion won and operating profit of 83.33 trillion won, both quarterly records.
• The company said HBM4 shipments accelerated and forecast the product would surpass HBM3E in shipment volume and revenue during the fourth quarter.
• The Kospi closed 6.63% higher at 6,012.44; SK hynix gained 10.89% and Samsung Electronics rose 9.01%.

Focal Point

The next test is SK hynix’s forecast that HBM4 will overtake HBM3E in both shipments and revenue during the fourth quarter, showing whether its earnings momentum is shifting to the newest generation of AI memory.

SK hynix said revenue increased 32% from the previous quarter while operating profit rose 38%, producing an 80% operating margin. The preliminary figures reflected higher memory prices and increased sales of server DDR5, HBM4 and data-center storage products.

The company also outlined approximately 100 trillion won in shareholder returns for fiscal 2026, including at least 30 trillion won in cash dividends and at least 60 trillion won in share repurchases and cancellations. It said long-term agreements with 14 customers cover more than half of its projected production capacity for 2027 and 2028.

The results helped push the Kospi 6.63% higher and triggered a five-minute suspension of program-buying orders as futures gains crossed the exchange’s threshold. The rally showed investors treating SK hynix’s profitability and contracted demand as support for continued AI infrastructure spending. The consequential question is whether HBM4 sales and customer commitments can sustain those expectations as the company expands capacity and investment.