Surging AI Demand Drives SK Hynix to Record First-Quarter Results, 77% Net Margin

The artificial-intelligence investment boom has fueled demand for high-bandwidth memory, delivering a surge in earnings and liquidity for SK Hynix, one of the technology’s leading suppliers. With its cash reserves swelling to 88 trillion won, the chipmaker has emerged as an unusually powerful force in South Korea’s corporate credit market, channeling its AI windfall into bonds and short-term debt while gaining influence over pricing and availability.

So far in 2026, SK Hynix has purchased as much as $28 billion of South Korean corporate bonds and commercial paper, making it a major source of demand and liquidity. The buying spree has supported issuers and helped absorb supply, but it has also made high-quality securities scarcer, pushed prices higher and complicated portfolio allocation for other institutional investors. The resulting imbalance is giving the memory-chip giant growing sway over a market traditionally shaped by financial institutions.

SK Hynix has become a prime beneficiary of the AI infrastructure boom, using its lead in high-bandwidth memory, or HBM, to supply chips that feed data to AI accelerators. Demand for HBM, server DRAM and enterprise solid-state drives, combined with sharply higher memory prices, has turned a cyclical recovery into a semiconductor supercycle. KB Securities estimated that global technology companies and AI data-center operators represented about 70% of second-quarter revenue.

On July 29, SK Hynix reported 2026 second-quarter revenue of 79.32 trillion won and operating profit of 60.54 trillion won, up 257% and 557% from a year earlier, respectively. Its operating margin reached 76%. Net profit surged to 93.92 trillion won, producing a 118% net margin, as all three measures set quarterly records. Even so, revenue and operating profit missed a 14-brokerage consensus of 84.1 trillion won and 64.1 trillion won, showing how elevated expectations have become.

SK Hynix is a major supplier of high-bandwidth memory (HBM) to AI chipmakers including NVIDIA. The expansion of AI data centers by Microsoft, Google and Meta has driven up memory demand and prices. As of 2025, SK Hynix held 61% of the global HBM market, far ahead of Samsung Electronics’ 17%, making it a key force reshaping South Korea’s semiconductor industry.

SK Hynix shares closed 5.6% higher on June 22, 2026, lifting its market capitalization to 2,080.4 trillion won, or about $1.35 trillion. That surpassed Samsung Electronics’ 2,066.7 trillion won valuation excluding preferred shares, ending Samsung’s reign as South Korea’s most valuable company since 2000. SK Hynix also plans to issue about $27 billion of American depositary receipts on Nasdaq as early as mid-to-late July.

The rapid expansion of AI data centers has driven demand for high-bandwidth memory, benefiting leading supplier SK Hynix. Growth in its HBM business has lifted revenue and profit, reshaping South Korea's semiconductor industry and challenging Samsung Electronics' long-held status as the top choice for job seekers.

SK Hynix's revenue surpassed Samsung Electronics' for the first time in 2025. Strong profits also allowed it to award employees bonuses equivalent to 2,964% of their monthly salaries, with some reports estimating payouts of about NT$30 million per person. The latest employment survey showed that SK Hynix had overtaken Samsung to become the company where South Korean job seekers most want to work.

SK Hynix is a major South Korean memory-chip maker and a key supplier of high-bandwidth memory, or HBM, to NVIDIA. As generative AI and high-performance computing expand, HBM has become a critical component in AI accelerators, prompting investors to reassess the company’s growth potential and industry position.

In the latest trading as of July 2026, SK Hynix’s market capitalization exceeded $1 trillion, making it the third Asian company to cross that threshold. Its shares have doubled so far this year and reached a record high, bringing its market value close to that of Samsung Electronics. Micron also crossed the $1 trillion mark over the same period, while UBS raised its price target for the company to $1,525.

High-bandwidth memory (HBM) delivers large volumes of data to AI accelerators with high bandwidth and low power consumption, making it a critical component in the race for generative AI computing power. After a downturn in the memory market, SK hynix rebounded through technology investment and its supply partnership with Nvidia, becoming a key company in the global AI semiconductor supply chain.

South Korean broadcaster KBS was granted access to SK hynix’s M16 wafer fabrication plant for the first time. Its program “The World Seen for the First Time” showed the company’s secret HBM production line operating around the clock, along with employees at work. The report did not specify an air date, investment amount or production capacity, but footage from the facility showed the company working at full speed to meet demand for AI memory.

SK hynix is a leading global supplier of high-bandwidth memory, or HBM. Its operating profit could double as the expansion of generative AI model training drives memory demand. HBM has become a critical component in the AI server supply chain, and the company’s earnings directly affect whether semiconductor employees share in the industry’s gains.

As of July 20, 2026, SK hynix shares had surpassed 1.2 million won to reach a record high. After the company adopted a bonus system tied to operating profit, analysts estimated that employees’ average annual profit-sharing bonus could reach 700 million won, or about NT$15 million. Related reports put the amount at between NT$13 million and NT$15 million.

SK Hynix is a leading global supplier of DRAM and NAND memory and a major producer of high-bandwidth memory for AI servers. As investment in generative AI infrastructure expands, rising purchases of servers and enterprise SSDs have made memory prices a key driver of the company’s earnings and share price.

KB Securities raised its price target for SK Hynix to 1.9 million won in its latest report and forecast that the company’s operating profit could reach 40 trillion won in the first quarter of 2026, far above market expectations. The report said demand from AI servers and enterprise SSDs was driving sharp increases in DRAM and NAND prices, with that momentum expected to continue supporting the business.