South Korean chip giant SK Hynix's 3Q profits surge
The sevenfold jump in the chip giant’s earnings come after official data showed South Korea’s GDP growth beat analysts’ expectations, the latest sign of a tech boom driving nationwide economic growth.
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.
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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