SK Hynix to return $75 billion to shareholders after record AI-fueled quarter

SK Hynix plans to hand about $75 billion back to shareholders this year. The announcement came Wednesday, alongside a quarterly profit that jumped more than seven-fold.

The South Korean memory chipmaker credited demand from AI infrastructure, which has pushed memory chip prices sharply higher. It also offered a supply outlook that runs directly against a growing worry on Wall Street: that the AI spending boom is running out of road.

The numbers behind the payout

For the third quarter of 2026, SK Hynix reported revenue of 104.62 trillion won, up 328% from a year earlier. It was the first time the company has topped 100 trillion won in quarterly revenue.

Operating profit reached 83.33 trillion won, a 632% year-over-year increase. That works out to an operating margin close to 80%.

The shareholder return plan totals approximately 100 trillion won, or about $75 billion, for 2026. It breaks down into more than 30 trillion won in cash dividends and more than 60 trillion won in share buybacks and cancellations.

The company also declared a third-quarter dividend of 14 trillion won, equal to 20,000 won per share. Part of that payout is a special dividend tied to gains on SK Hynix’s investment in Kioxia, the Japanese memory maker.

Investors responded about how you would expect. SK Hynix shares climbed between 9% and 11% in early trading after the results.

Sold out until 2029

The payout grabbed the headlines, but the supply commentary may matter more over the long run. SK Hynix said it has sold out of both HBM and DRAM chips until 2029.

HBM, or high-bandwidth memory, is a specialized type of memory built by stacking DRAM chips vertically. That speed is why HBM has become a critical component in the hardware used to train and run large AI models.

According to the company, demand for HBM is running at double what it can currently supply. SK Hynix also said long-term agreements cover more than 50% of its production capacity for 2027 and 2028.

The company went further, saying a chip shortage is likely to continue through 2030.

Addressing the AI slowdown question

Chief Financial Officer Kim Woo-hyun took the question head on. He acknowledged that customers are now examining project feasibility and profitability more carefully before committing.

Even so, Kim said spending would continue. In other words, buyers are reading the fine print more closely, but they are still signing.