The South Korean memory chip maker reported a 328% year-over-year increase in third-quarter revenue and a 632% jump in operating profit, noting that its DRAM and high-bandwidth memory (HBM) products are effectively sold out through 2029. To secure future supply, SK hynix has signed long-term agreements with 14 key customers, including major cloud service providers, to cover more than 50% of its production capacity for 2027 and 2028.
The surge in results is driven by the company’s roughly 50% market share of HBM, the specialized memory used in Nvidia’s artificial intelligence chips. Following the report, Needham analyst raised its 12-month price target for the stock to $235 and forecast that HBM prices will increase next year. SK hynix plans to expand its first Yongin fab and phase in clean room openings to manage the risk of future oversupply while matching current demand.