CoinDesk
South Korea’s Kospi surged 6.6% on Wednesday as SK Hynix reported a sevenfold increase in September-quarter operating profit and announced 60 trillion won ($45 billion) in planned shareholder returns. SK Hynix shares climbed 11% and Samsung Electronics gained 9%, while Micron and SanDisk each rose 4% in U.S. premarket trading.
SK Hynix reported operating profit of 83.3 trillion won ($62.5 billion), more than 7% above analyst forecasts. The company plans to return another 60 trillion won through buybacks and dividends during the remainder of its fiscal year. It also said conventional and high-bandwidth memory capacity is sold out through 2029, with shortages expected to continue through at least 2030.
Why it matters
The results give investors fresh evidence that demand for AI infrastructure is supporting chipmakers’ earnings, particularly in memory. Tight supply and strong reported profits helped revive AI stocks after weeks of pressure, when investors questioned the cost and financing of the sector’s infrastructure buildout.
The scale of the shareholder-return plan adds another investor-facing signal from SK Hynix, while its supply outlook points to a memory market that may remain constrained for years. Those fundamentals are helping counter concerns over whether AI investment can sustain its pace.
Market impact
The rally extended beyond South Korea: Micron and SanDisk rose in premarket trading, while Bitcoin also edged up to $81,700. The broader AI recovery has lasted several days, but investors remain focused on the funding and cost of infrastructure spending alongside chip demand and earnings.
SK Hynix’s forecast of shortages through at least 2030 puts memory supply in focus as markets assess whether chipmakers can maintain earnings strength. Further gains in AI-linked stocks will depend in part on whether demand and investment continue to support that outlook.
Frequently asked questions
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How much did SK Hynix plan to return to shareholders?
The company announced plans to return 60 trillion won ($45 billion) through buybacks and dividends during the remainder of its fiscal year.
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What did SK Hynix say about memory supply?
It said conventional and high-bandwidth memory capacity is sold out through 2029, with shortages expected to persist through at least 2030.
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How did major chip stocks perform during the rally?
SK Hynix shares climbed 11% and Samsung Electronics gained 9%. Micron and SanDisk each rose 4% in U.S. premarket trading.
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Why did SK Hynix’s results support AI stocks?
The strong earnings and forecast of continued memory shortages gave investors evidence that AI infrastructure demand is supporting chipmakers’ earnings.
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What concerns remain for investors in the AI sector?
Investors are still weighing the cost and funding of the AI infrastructure buildout alongside chip demand and earnings.
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