SK Hynix profit beat fuels $45 billion of dividends, buyback
The world’s second-biggest memory chipmaker reaffirmed it expects shortages of the components crucial to Nvidia Corp. accelerators to persist through at least 2030, propping up prices.
SK Hynix Inc., the world's second-largest memory chipmaker, announced plans to return approximately $45 billion to shareholders after experiencing a profit surge of over seven times. The company reported an operating profit of 83.3 trillion won ($62.5 billion) for the September quarter, surpassing market expectations by more than 7%.
This strong performance is attributed to the surge in demand for AI infrastructure, which is driving the need for memory chips. SK Hynix reaffirmed its expectation of continuing memory chip shortages, particularly those crucial for Nvidia's accelerators, through at least 2030, which is expected to support prices. In addition to the $45 billion shareholder returns, the company also outlined plans to distribute 60 trillion won in buybacks and dividends throughout the fiscal year.
The results have bolstered optimism for sustained profits from the AI-driven memory demand surge, despite concerns over AI project financing and infrastructure setup. SK Hynix and Samsung Electronics, the company's main rivals, also saw their shares rise after the positive announcement.
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