MediumV Technology Geopolitics & AI28 October 2026, Wednesday

SK hynix posts record quarterly operating profit of 83.3 trillion won

SK hynix reported third-quarter revenue of 104.6 trillion won and operating profit of 83.3 trillion won on 28 October, an operating margin of 79.7%. The company announced a 100 trillion won shareholder return plan, and the KOSPI broke above 6,000 points during the session.

Location: ICHEON

According to TradingKey, revenue rose 328% year on year and operating profit more than sevenfold, beating market expectations of about 76.7 trillion won. The company said AI infrastructure investment is sustaining demand for DRAM and HBM, and that existing orders cover several years. HBM is high-bandwidth memory stacked next to the processor. SK hynix has signed long-term supply agreements with 14 major customers, and more than 50% of its 2027-2028 capacity is already committed to orders.

BigGo Finance says the 100 trillion won plan comprises more than 60 trillion won of buybacks and cancellations and more than 30 trillion won of cash dividends, including the 40 trillion won approved in August. Investing.com describes the plan as 60 trillion won of additional returns; the two figures reconcile depending on whether the August approval is counted. The company will also distribute most of its gain on the Kioxia investment to shareholders this year.

Investing.com reports that SK hynix shares closed 28 October up about 11% and the KOSPI up 6.6%, while Samsung Electronics gained 9%. According to BigGo, the KOSPI hit 6,003.22 at 10:57, topping 6,000 for the first time in ten trading days. When KOSPI 200 futures rose 5.17%, program orders were halted for five minutes, the first back-to-back halts since 21-22 July. Net foreign inflows into the main board reached 639.8 billion won.

The rally spread to Japan, where Kioxia gained 13.8%, according to Investing.com. BigGo attributes the rally to Anthropic's IPO filing, a large AI equipment financing and Broadcom's chip contract. Samsung's final third-quarter results and shareholder return announcement are expected on 29 October.

Talay assessment

Bottom line

The numbers show the AI memory cycle is not yet signalling a peak: more than half of 2027-2028 capacity is already committed. But a 79.7% margin and a 100 trillion won payout deepen the concentration of Korea's stock market and growth in a single line item. Contracted capacity protects revenue in the coming quarters; the fragility would surface in a pause in AI investment financing.

Likely effects

Korean marketUncertainWeeks
The KOSPI topping 6,000 on foreign inflows increases the market's dependence on memory chips; back-to-back program halts point to near-term overheating.
Memory supply chainNegative1–6 months
Multi-year agreements with 14 customers and committed 2027-2028 capacity narrow other buyers' access to HBM and keep pricing power with producers.
JapanPositiveWeeks
Kioxia's 13.8% gain and SK hynix distributing its Kioxia profit show the rally spreading into the Japanese memory chain.

Possibilities, ranked

1
Contracts extend the cycle60%
Samsung also reports strong results and returns, and memory prices stay high in 2027 contracts.
Watch: Samsung's 29 October results and the size of its shareholder return
2
Financing pause25%
Spreads on AI data centre debt widen, buyers defer order schedules and volatility rises in memory stocks.
Watch: Pricing of AI infrastructure debt issues and Korea's November export data
3
Overcapacity fears15%
Rival capacity additions and moves by Chinese producers pull price expectations lower.
Watch: DRAM contract prices turning to monthly declines

Probabilities are calibrated judgement based on the sources, not measurement, and are revised as new information arrives. Not investment advice.

Market reaction

Indicators affected

Operating profit▲ ₩83.3 trillion
Operating margin▲ 79.7%
KOSPI close▲ +6.6%

Bottom line

Likely effects

Possibilities, ranked

Sources