SK Hynix Earnings Jump on AI Demand

SK hynix reported a surge in FY2025 earnings on Jan. 28, 2026, driven by strong AI-related demand for high-bandwidth memory (HBM) and higher memory prices. The company also announced an additional dividend and plans to expand U.S. AI-related packaging capacity.

Record FY2025 Results

Under Korean International Financial Reporting Standards (K-IFRS), SK hynix posted FY2025 revenue of 97.1 trillion won, a 47.0% increase year-over-year. Operating profit doubled to 47.2 trillion won, delivering a 49.0% margin. Net profit rose 117.0% to 42.9 trillion won, with a 44.0% margin.

In the fourth quarter, revenue reached 32.8 trillion won, up 66.0% year-over-year and 34.0% sequentially. Operating profit climbed 137.0% year-over-year and 68.0% quarter-over-quarter to 19.2 trillion won, yielding a 58.0% margin. Quarterly net profit increased 90.0% year-over-year to 15.2 trillion won.

This operating-profit performance surpassed Samsung Electronics’ FY2025 figure, marking a shift in the competitive landscape.

AI Demand and Capacity Expansion

HBM demand was a key driver, with revenue more than doubling year-over-year. AI workloads also boosted sales of conventional DRAM and NAND, expanding SK hynix’s premium-product mix. The company began mass production of HBM4 after completing industry-first preparations in September 2025. It highlighted leadership in HBM3E, HBM4, and Custom HBM as sources of premium pricing. Song Hyun Jong, president and head of the corporate center, said, “We will strengthen our role not merely as a product supplier, but as a core infrastructure partner in the AI era, enabling customers to meet their AI performance requirements.”

To meet rising AI data-center demand, SK hynix plans to accelerate its 1cnm DRAM process and broaden AI product lines, including SOCAMM2 and GDDR7. It will transition NAND production toward 321-layer QLC eSSD optimized for AI workloads. The company aims to maximize capacity at its M15X fab, build a planned Yongin fab, and expand packaging operations in Cheongju and Indiana as part of its U.S. AI expansion strategy. It expects a shift to inference and distributed architectures to further increase demand for HBM, server DRAM, and NAND, prioritizing customer needs amid supply imbalances.

Shareholder Returns and Capital Actions

The board approved an additional cash dividend of 1.0 trillion won, or 1,500 won per share, bringing total FY2025 dividends to 2.1 trillion won, or 3,000 won per share. Management will cancel 15.3 million treasury shares, about 2.1% of outstanding stock, valued at roughly 12.2 trillion won.

SK hynix framed these payments and the buyback as part of its effort to convert the AI-driven revenue surge into sustained profitability and enhanced shareholder value while scaling premium-product supply and U.S. packaging capacity.