Nvidia-Supplier SK Hynix Sells Out 2026 Chip Supply As AI Boom Triggers Historic 'Super Cycle' — Posts Record $8.02 Billion Q3 Profit - Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA) - Benzinga
On Wednesday, South Korea's SK Hynix (HXSCF) said it has completely sold out its chip supply for next year and plans to ramp up investments as the global artificial intelligence boom fuels a memory chip "super cycle."
AI Demand Sparks Record-Breaking Quarter
The world's second-largest memory chipmaker and a key supplier to Nvidia Corporation (NASDAQ: NVDA) reported a record KRW 11.4 trillion ($8.02 billion) operating profit for the July–September quarter, up 62% from a year earlier.
Quarterly revenue climbed 39% to KRW 24.4 trillion, driven by soaring demand for high-bandwidth memory and AI data center chips.
After reporting its profit, Kim Kyu-hyun, SK Hynix's head of DRAM marketing, stated that the industry's shift toward HBM production has strained overall chip output, reported Reuters.
"Total output will inevitably remain limited," he said. "This structural constraint on DRAM supply is expected to support the current prolonged memory super cycle, as supply growth lags behind accelerating demand."
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HBM4 Launch And OpenAI Partnership
SK Hynix said it will begin shipping its next-generation HBM4 chips in the fourth quarter, building on its leadership in AI memory.
The company has already secured full customer demand for its entire DRAM, HBM and NAND production for 2026, the report said.
It also mentioned a letter of intent with ChatGPT-maker OpenAI for HBM supply, underscoring robust AI-driven demand.
SK Hynix expects the HBM market to grow more than 30% annually over the next five years as tech giants expand investments in AI infrastructure.
Expanding Investment Despite Trade Pressures
The company plans to significantly boost capital spending next year to meet surging global demand, though it did not specify an amount.
Earlier this month, SK Hynix and Samsung Electronics (OTC: SSNLF) secured initial deals to supply chips and equipment for Microsoft Corporation (NASDAQ: MSFT)-backed OpenAI's Stargate project.
In September, the U.S. Commerce Department withdrew the waivers previously granted to Samsung and SK Hynix that permitted them to import American semiconductor manufacturing equipment for their operations in China.
Price Action: SK Hynix shares have surged 218.93% in 2025, outpacing Samsung's 87.27% rise and the KOSPI index's 69.02% gain, reflecting investor confidence in its dominant role in the AI-driven chip market. |
