SK Hynix Jumps 13% After Earnings Beat, Signals AI Memory Sold Out Through 2029
Updated
Updated · CNBC · Oct 28
SK Hynix Jumps 13% After Earnings Beat, Signals AI Memory Sold Out Through 2029
3 articles · Updated · CNBC · Oct 28
Summary
SK Hynix’s New York-listed shares surged more than 13% after the memory maker posted better-than-expected results and issued an upbeat outlook, bucking broader skepticism over AI data-center spending.
Revenue beat estimates by about 6%, gross margin reached 85.7%, and the company forecast shipment growth in the mid-20% range this quarter, up from 10% in the third quarter.
Long-term customer agreements effectively sold out production through 2029, letting SK Hynix signal confidence to keep adding manufacturing equipment despite the industry’s usual oversupply fears.
The rally spread across AI chip names, lifting Micron nearly 6%, Arm 4% and AMD 3%, while SK Hynix’s low valuation—about 4 times 2027 earnings—and shareholder returns added to the appeal.
The results reinforced a broader view that AI memory demand remains strong enough to support capacity expansion and buybacks even after investors questioned whether the data-center build-out would pay off.