Memory chip stocks are back on the rise today: What’s driving the upswing for Micron, Sandisk, and SK Hynix?

Memory chip stocks have been on a downward trend recently, but today could signal the start of a recovery. SK Hynix Inc.'s stock rose 10.89% on Wednesday after delivering better-than-expected third-quarter results. The South Korean company reported $78.13 billion in revenue, surpassing Wall Street's projected $78.34 billion, marking a 328% increase year-over-year.

Operating profit for SK Hynix was $62.22 billion, exceeding the forecasted $76.72 billion and representing a 632% year-over-year increase. The company also revealed plans to distribute approximately $100 billion in shareholder returns this year. By the close of trading, SK Hynix's shares were up 128.42% year-to-date, but still down 16.27% over the past 30 days.

The Nasdaq-listed shares of SK Hynix (Nasdaq: SKHY) surged more than 7% in premarket trading on Wednesday. Samsung Electronics also rose alongside its South Korean counterpart, closing up 9.01%. Similarly, it was up 101.83% for the year but down 9.87% for the month. South Korea's KOSPI Index, where both SK Hynix and Samsung are traded, closed 6.63% higher but down 12.73% for the month.

American memory chip companies experienced a boost in premarket trading on Wednesday following SK Hynix's strong performance. Micron Technology Inc. (Nasdaq: MU) climbed 3.97%, while Sandisk Corp. (Nasdaq: SNDK) rose 4.91%. Memory stocks have been gaining traction this year due to a memory shortage caused by the expansion of AI infrastructure. However, the stocks have cooled after reaching record highs during the summer.