SK Hynix delivers record quarterly profit as AI demand smashes expectations
SK Hynix delivered unprecedented financial results on January 28, 2026, announcing record-breaking quarterly and annual performance. The South Korean memory chip maker reported fourth-quarter operating profit of 19.17 trillion won, surging 137% year-over-year and beating analyst estimates of 17.73 trillion won. Revenue jumped 66% to 32.83 trillion won as AI-driven memory shortages pushed prices higher across all product categories.
The results cement SK Hynix’s position as the dominant player in high-bandwidth memory for artificial intelligence applications. Shares surged 5.13% to 841,000 won following the announcement, reflecting strong investor confidence. The company’s success comes from strategic focus on HBM chips and server memory products that power AI data centers globally.
Record-Breaking Sk Hynix Q4 2025 Results
SK Hynix achieved its highest-ever quarterly performance across all financial metrics. Operating profit reached 19.1696 trillion won, up 68% quarter-over-quarter, with a 58% operating margin, a 4 percentage point increase, surpassing TSMC’s. Net profit hit 15.2460 trillion won at impressive net margins.
Revenue surged 34% sequentially to 32.8267 trillion won, driven by booming conventional memory, HBM, and server demand. Results beat expectations, confirming SK Hynix as Asia’s top AI winner per SemiAnalysis.
Annual 2025 Financial Performance
The full-year results significantly exceeded previous records set in 2024. Annual revenue increased by more than 30 trillion won. Operating profit nearly doubled year-over-year, marking the highest annual performance in company history. The 49% operating margin demonstrated exceptional profitability improvements. Net profit margin reached 44%, reflecting strong bottom-line conversion.
HBM Revenue Drives Growth
High-bandwidth memory revenue more than doubled in 2025 versus 2024, fueling SK Hynix’s record performance. The company secured exclusive supplier status for Microsoft’s Maia 200 AI processor, deployed in Iowa with expansions to Arizona. Holding 61% market share (Macquarie) and 57% in Q3 (Counterpoint), it outpaces Samsung (22%) and Micron.
HBM4 Mass Production Leadership
SK Hynix led the industry by starting HBM4 mass production in September 2025, now scaling up. It unveiled a 16-layer, 48GB HBM4 at CES 2026, meeting top speeds. Shipments began in Q4 2025, with full 2026 expansion. Secured over two-thirds of Nvidia Vera Rubin supply via custom HBM for a competitive edge.
Conventional Memory Market Strength
Beyond HBM, conventional DRAM drove earnings growth via sharp Q4 server demand. SK Hynix completed full-scale 1nm process mass production sixth-gen 10nm-class tech and developed 256GB DDR5 RDIMM with 32Gb 1b DRAM.
High-capacity DDR5 (>128GB) shipments doubled QoQ, fueled by AI servers. Shortages hit DRAM/NAND for consumer/EV; DRAM prices rose in the high single digits sequentially.
NAND Business Recovery
NAND hit record annual revenue, recovering strongly in H2 despite sluggish H1. SK Hynix completed 321-layer QLC development; enterprise eSSD shipments grew substantially on AI data center demand. Plans maximize competitiveness via 321-layer transition; Solidigm’s QLC eSSD targets AI storage. Bit shipments fell mid-single digits QoQ, but eSSD grew double digits.
Sk Hynix Chart Analysis and Stock Performance
Earnings Day Surge: SK Hynix shares jumped 5.13% on January 28, 2026, following the earnings announcement. Trading volume exceeded normal levels significantly as investors reacted positively. The stock approached near-record highs set earlier in January.
Year-Long Rally: The stock gained 281.43% over the past year through January 16, 2026. SK Hynix reached an all-time high of 788,000 won on January 8, 2026. Market capitalization hit 508.17 trillion won, making it one of Asia’s most valuable tech companies.
Pre-Earnings Momentum: Shares surged 7.7% on January 27, 2026, ahead of official results on takeover speculation and profit forecast leaks. The stock benefited from the Microsoft supplier announcement. Investors positioned ahead of confirmed record earnings.
Shareholder Returns Enhancement
SK Hynix announced 1 trillion won additional dividends (1,500 won/share), bringing the 2025 total to 2.1 trillion won. It plans to cancel 15.3 million treasury shares worth 12.24 trillion won on February 9, 2026, boosting value amid record profits.
Cash equivalents rose 10.9 trillion won in Q3 to 27.9 trillion won year-end. Interest-bearing debt: 24.1 trillion won, yielding 3.8 trillion won net cash. Moody’s upgraded its credit rating on improved finances.
Sk Hynix Capacity Expansion Plans
SK Hynix will maximize M15X fab production in Cheongju; Yongin Semiconductor Cluster’s first fab construction advances. Advanced packaging develops in Cheongju/Indiana, for global integration. Investing 19 trillion won in the P&T7 advanced packaging plant.
Announced $10 billion US AI solutions “AI Co.” using Solidigm NAND subsidiary, expanding AI data center ecosystem. Total AI assets could hit 10 trillion won, including TerraPower stakes.
Competitive Positioning Against Samsung
Samsung reports January 29, 2026 trails HBM at 22% vs. SK Hynix’s 57-61%. SK Hynix Device Solutions overtook Samsung in profitability; eyes leadership with a 3 trillion won gap to Samsung’s 43.53 trillion won forecast.
Analysts expect a strong Samsung Q4 but a weak HBM. Samsung boosts 2026 memory investment, HBM output, Pyeongtaek expansion, yet SK Hynix leads in advanced HBM tech.
Future Outlook and AI Market Evolution
AI shifts to inference, expanding the memory role ecosystem-wide. HBM demand grows continuously; server DRAM/NAND rises too. Distributed architectures boost memory use. Supply-demand imbalances persist into 2026.
Capacity lags demand growth, sustaining shortages/prices. SK Hynix secured all 2026 DRAM/NAND demand; capacity sold out through next year.
Analyst Perspectives and Market Reaction for Sk Hynix
SemiAnalysis’s Ray Wang deems SK Hynix Asia’s biggest AI winner via HBM leadership/memory competitiveness. Commodity DRAM drives 2026 earnings amid constraints. Analysts watch the earnings call for HBM4 timelines/fab details.
Social media notes 66% revenue/137% profit jumps as early-cycle strength, beating FnGuide. Operating profit exceeded 2.5 trillion won. The media highlights historic achievements.
Conclusion
SK Hynix delivered stunning Q4 2025 results that exceeded all expectations. Operating profit of 19.17 trillion won, and revenue of 32.83 trillion won represent a record quarterly performance. Full-year 2025 operating profit of 47.21 trillion won doubled from 2024 levels.
HBM revenue more than doubled as the company captured a dominant market share exceeding 60%. The stock surged 5% on the announcement while announcing enhanced shareholder returns. Mass production of HBM4 began ahead of competitors, securing supply agreements with Nvidia and Microsoft. Conventional memory prices surged on persistent shortages expected through 2026.
Frequently Asked Questions (FAQs)
SK Hynix’s record Q4 profit of 19.17 trillion won was driven primarily by HBM revenue doubling year-over-year. AI memory shortages pushed prices higher across DRAM and NAND products. Server memory demand surged as hyperscalers expanded data center capacity.
SK Hynix dominates HBM with 57-61% market share versus Samsung’s 22%. The company is the only supplier capable of providing both HBM3E and HBM4 simultaneously. SK Hynix secured exclusive supplier status for Microsoft’s Maia 200 processor.
SK Hynix began HBM4 mass production in September 2025, first in the industry. Shipments started in Q4 2025 with full-scale sales expansion planned for 2026. The company unveiled 16-layer HBM4 with 48GB capacity at CES 2026. Demand is already secured through 2026, with capacity essentially sold out.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
