Stock Market Today, Oct. 28: SK Hynix Surges on Record Q3 Results and AI-Memory Demand

On October 28, SK Hynix, a leading memory semiconductor company, experienced a significant surge in its stock price, closing at $164.70, up 13.30%. The positive movement in the stock was driven by the company's impressive third-quarter results and the growing demand for AI-memory. This surge came alongside a surge in trading volume, with 48.4 million shares changing hands, representing about 113% of the stock's three-month average of 22.7 million shares.

SK Hynix, which went public in 2026, saw a 2% drop since its initial public offering (IPO). Despite this decline, the company's impressive performance has caught the attention of investors. The company's operating margin reached an impressive 80% and its operating profit jumped more than sevenfold.

Among other semiconductor memory chip peers, Micron Technology (MU) saw a 5.87% increase, closing at $983.23, while SanDisk (SNDK) rose 7.66% to close at $1,404.77. Both moves were attributed to the strong demand for AI-memory.

SK Hynix's management attributed its success to a record quarter and emphasized that DRAM (Dynamic Random-Access Memory) and HBM (High Bandwidth Memory) production volumes are effectively sold out through 2029. This limited supply, coupled with strong demand, is expected to bring ongoing free cash flow and profit growth. However, it is important to note that scaling up supply to meet demand will take time because leading-edge manufacturing processes are becoming increasingly complex, and new fabrication facilities (fabs) take years to build.

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