SK hynix ADR Surges 13% as Q3 Operating Margin Hits Record 80%, Company Sees Memory Shortage Through 2030

SK hynix (000660-KR) reported third-quarter results Wednesday, with operating margin reaching a record 80% and management projecting AI-driven memory shortages could persist through 2030. The ADR (SKHY-US) jumped 13.30% in U.S. trading, while Seoul-listed shares rose nearly 11%; peer Micron (MU-US) gained over 5.8%. Q3 revenue totaled 104.62 trillion won, more than quadrupling year-over-year and beating Wall Street estimates by about 7%. Profit reached 39.78 trillion won, roughly $29.7 billion, more than tripling from a year earlier. The 80% operating margin rose 3 percentage points from the prior quarter and topped the 78.4% consensus, driven by sharp memory price increases. DRAM average selling prices climbed nearly 30% sequentially and NAND ASPs about 25%. Management said AI is creating a virtuous cycle of productivity gains and new revenue streams that is fueling infrastructure demand, with physical AI applications such as autonomous vehicles and robotics adding further memory demand. Advanced-node complexity and lengthy fab construction timelines are expected to constrain supply expansion. SK hynix has locked more than 50% of 2027 and 2028 output into long-term contracts. Cantor analyst C.J. Muse called the results solid but said the strong forward outlook is driving the stock, citing structural supply-demand imbalance through 2030. The company plans about 100 trillion won in shareholder returns this year, including at least 30 trillion won in dividends and 60 trillion won in buybacks, of which 40 trillion won is complete.