South Korean memory-chip maker SK Hynix said on Wednesday it would return about $75 billion to shareholders this year after posting a record quarterly profit, framing a major SK Hynix dividend announcement around cash payouts and large share buybacks.
The company, a supplier to Nvidia and a leading maker of high-bandwidth memory (HBM) chips used in AI processors, said AI infrastructure demand continues to lift memory prices. It also said HBM and DRAM chips are sold out until 2029, HBM demand is roughly double what it can supply, and a shortage is likely to last through 2030.
Record profit and how the $75 billion returns work
For July to September, SK Hynix reported operating profit of 83.3 trillion won, a quarterly record, compared with 11.4 trillion won in the same period a year earlier—more than a seven-fold rise. Revenue climbed 328% to 104.6 trillion won. The result beat a 76.7 trillion won LSEG SmartEstimate, which weights analysts who have been more consistently accurate.
Under the SK Hynix dividend announcement and wider return policy, the firm said this year’s package totals about 100 trillion won ($75 billion). That mix includes cash dividends of more than 30 trillion won and share repurchases and cancellations of more than 60 trillion won, including 40 trillion won already announced in August. It also said most of the gain from its investment in Japanese peer Kioxia would go to shareholders through a special dividend tied to third-quarter and full-year payouts.
Shares rose as much as 9.4% in morning trade after the disclosure.
Long-term deals and plans to expand capacity
SK Hynix holds almost half the HBM market, according to Nomura data, and is also a major DRAM supplier. To firm up mid- to long-term demand, it said it has signed long-term agreements with 14 major customers and is discussing longer terms—contracts are typically five years—with others. Secured long-term agreement volume already covers more than 50% of planned production capacity for 2027 and 2028, the company said.
To meet demand, SK Hynix said capital spending will rise significantly next year from this year’s level, funding advanced manufacturing equipment and infrastructure in South Korea and overseas.
AI spending: company and analyst views
Addressing worries about a slowdown in customers’ AI budgets, Chief Financial Officer Kim Woo-hyun said buyers are scrutinising project feasibility and profitability and adjusting investment timing. He still expects AI investment momentum to continue as spending turns into wider AI service use and clearer business results, with a broader set of companies investing.
Senior analyst Ryu Young-ho at NH Investment & Securities said the results eased market concerns by beating expectations. He noted the fourth quarter is traditionally stronger and that operating profit could approach 100 trillion won, adding that the company’s message on sustained medium- to long-term memory demand has likely reassured investors.
Aasan alfaaz mein
SK Hynix ne is saal shareholders ko lagbhag 75 billion dollar wapas karne ka plan diya hai. Company ka teen mahine ka munafa record level par gaya hai kyunke AI ke liye memory chips ki demand bohot tez hai. Yeh paisa zyada tar cash dividend aur shares wapas kharidne se milega. Global chip shortage 2030 tak chal sakti hai, is liye tech devices ki duniya bhar ke prices is market se judi rehti hain.
