SK hynix Posts Record Q3 Profit as AI Memory Demand Surges; JPMorgan, Citi, Wedbush Stay Bullish

SK hynix reported record third-quarter results, with revenue of 104.62 trillion won and operating profit of 83.33 trillion won, both all-time quarterly highs, as AI-driven memory prices surged. Revenue rose 32% quarter-on-quarter and 328% year-on-year; operating profit climbed 38% on the quarter and 632% on the year, for a 79.7% operating margin. DRAM average selling prices rose nearly 30% from the prior quarter, above JPMorgan's 20% estimate, while NAND ASPs rose about 25% versus a 12% forecast. Server DDR5 shipments grew more than 40% sequentially, Citi said. However, roughly 11.6 trillion won in currency losses and a 22.9 trillion won Kioxia-related valuation loss pushed pretax profit down about 59% on the quarter to 50.71 trillion won. SK hynix announced a 100 trillion won shareholder return program for 2026, including about 60 trillion won in buybacks and 40 trillion won in dividends. JPMorgan maintained an Overweight rating with a 2.75 million won target; Citi kept Buy at 3 million won; Wedbush raised its target to 3 million won from 2.56 million. Korean-listed shares rose more than 10% on October 28 to 1.487 million won, while the U.S. ADR gained about 7% to $145.36.