Key Highlights
- First quarter net profit reached 40.3 trillion won ($27.2B), marking a nearly 400% increase from the prior year
- Quarterly revenue exceeded 50 trillion won milestone for first time ever, slightly below analyst expectations
- Operating margin achieved unprecedented 72% level, while operating profit nearly doubled quarter-over-quarter from Q4 2025
- Controls 57% of the global HBM market with plans to introduce HBM4E chip samples during second half of 2026
- Announces 19 trillion won capital expenditure for new South Korean manufacturing facility to address AI chip demand
SK Hynix delivered exceptional first-quarter results in 2026. The memory semiconductor manufacturer from South Korea unveiled record-breaking quarterly earnings on Thursday, propelled by escalating prices in the AI memory chip sector.
The company’s net profit reached 40.3 trillion won ($27.2 billion) during the first quarter, significantly exceeding the analyst consensus of 29.4 trillion won. Quarterly revenue totaled 52.58 trillion won — marginally below the projected 53.55 trillion won, yet representing an impressive near-tripling compared to the same period last year.
Operating profit expanded fivefold on a year-over-year basis and approximately doubled from the preceding quarter. The company achieved a record-setting operating margin of 72%.
Shares climbed as much as 3.6% during early Seoul trading hours before moderating to finish down 0.9% for the session.
The chipmaker attributed these stellar results to climbing memory chip prices combined with intensifying demand from artificial intelligence infrastructure investments. Even though Q1 traditionally represents a seasonally softer period, the company indicated demand remained robust.
“Strong demand persisted due to expanded investments in AI infrastructure,” the company said in its earnings release.
HBM Market Leadership Powers Growth
SK Hynix maintains its position as the leading global provider of high-bandwidth memory, an essential component for AI server systems. The company commands a 57% market share in HBM and serves as a principal supplier to Nvidia.
Demand for HBM has been exceptionally robust, creating production capacity constraints that have simultaneously elevated pricing for standard DRAM chips. The DRAM sector experienced 30% sequential growth for two consecutive quarters, based on data from Counterpoint Research.
The company’s DRAM marketing executive indicated that the favorable pricing environment may prove “more prolonged compared with the past,” given that suppliers face challenges matching current demand levels.
Samsung overtook SK Hynix to claim the leading position in total DRAM revenue during Q4 2025, according to Counterpoint figures. However, SK Hynix maintains its commanding presence in the higher-margin HBM segment.
Samsung disclosed in February that it had commenced shipments of its initial HBM4 products. SK Hynix had already provided HBM4 samples almost twelve months prior, and announced Thursday its intention to deliver seventh-generation HBM4E samples in the latter half of 2026, targeting volume production for 2027.
Manufacturing Expansion and Supply Chain Management
The semiconductor manufacturer revealed plans for a 19 trillion won investment in a new production facility located in Cheongju, South Korea.
SK Group Chairman Chey Tae-won has indicated that the worldwide chip wafer shortage may continue through 2030, citing that capacity increases require four to five years to become operational and projecting a supply gap exceeding 20%.
Regarding supply chain risks, the continuing Middle East tensions have generated concerns about availability of critical materials including helium, bromine, and tungsten. SK Hynix confirmed it has diversified its vendor relationships and maintained adequate inventory levels, anticipating minimal production disruption.
The company has also secured long-term liquefied natural gas contracts to mitigate energy cost volatility.
Counterpoint Research analyst MS Hwang told CNBC that first quarter performance from memory manufacturers “show strong profitability and reveal that a lot more memory is needed for AI inference than expected.”
Mirae Asset Securities analyst Kim Young-gun projected that SK Hynix’s earnings trajectory will remain robust throughout 2026, highlighting multi-year supply contracts being executed with major technology clients — several of whom are actively pursuing extensions beyond original agreement timeframes.
