Key Highlights
- First-quarter net income reached 40.3 trillion won ($27.2B), representing a nearly 400% increase compared to the same period last year
- Quarterly revenue exceeded 50 trillion won for the first time, falling just shy of Wall Street expectations
- Operating margin reached an unprecedented 72%, while operating profit climbed close to double the previous quarter’s figure
- The chipmaker commands 57% of the HBM market and expects to introduce HBM4E sample chips during the latter half of 2026
- A 19 trillion won investment in a new South Korean production facility aims to address AI-fueled memory chip demand
SK Hynix delivered exceptional first-quarter 2026 results. The memory chip manufacturer from South Korea announced record quarterly earnings on Thursday, propelled by surging demand and pricing for AI-optimized memory solutions.
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First-quarter net income totaled 40.3 trillion won ($27.2 billion), significantly exceeding the analyst consensus of 29.4 trillion won. Revenue reached 52.58 trillion won — marginally below the 53.55 trillion won projection, yet representing nearly triple the figure from twelve months prior.
Operating profit expanded fivefold on an annual basis and approached double the fourth-quarter level. Operating margin touched 72%, establishing a new company record.
Shares climbed as high as 3.6% during early Seoul trading hours before moderating to close down 0.9%.
SK Hynix attributed the performance to escalating memory chip pricing and intensifying demand from artificial intelligence infrastructure expansion. The company noted that demand remained robust despite the first quarter typically representing a seasonal lull.
“Strong demand persisted due to expanded investments in AI infrastructure,” the company said in its earnings release.
High-Bandwidth Memory Leadership Fuels Growth
The company leads globally in high-bandwidth memory production, a critical component for AI server systems. With 57% market share in HBM, SK Hynix serves as a principal vendor to Nvidia.
HBM demand has reached such intensity that production capacity has become a bottleneck, creating upward price pressure on standard DRAM products as well. Counterpoint Research data shows the DRAM market expanded 30% quarter-over-quarter for two consecutive reporting periods.
The firm’s DRAM marketing executive indicated that the favorable pricing environment may prove “more prolonged compared with the past,” as manufacturers work to satisfy demand levels.
Samsung overtook SK Hynix for the leading position in total DRAM revenue during Q4 2025, according to Counterpoint figures. SK Hynix maintains its dominant position in the higher-margin HBM segment.
Samsung revealed in February that it had begun delivering its initial HBM4 products. SK Hynix had provided HBM4 samples nearly twelve months earlier, and announced Thursday its intention to distribute seventh-generation HBM4E samples in the second half of 2026, targeting volume production for 2027.
Production Expansion and Resource Planning
The chipmaker revealed plans for a 19 trillion won investment in a new Cheongju, South Korea manufacturing site.
SK Group Chairman Chey Tae-won has projected that worldwide chip wafer shortages may continue through 2030, citing four to five-year timelines for capacity expansion and anticipating supply gaps exceeding 20%.
Regarding material supply considerations, ongoing Middle East tensions have raised questions about availability of helium, bromine, and tungsten. SK Hynix reported it has broadened its supplier network and accumulated adequate reserves, expecting minimal production disruption.
Long-term liquefied natural gas contracts have been secured to mitigate energy cost volatility.
Counterpoint Research analyst MS Hwang told CNBC that first-quarter memory sector results “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 finalized with major technology clients — several of whom are pursuing contract extensions beyond original timeframes.
