SK hynix Inc. (SKHY) shares rose 3.73% to $135.03 after the company reported record second-quarter results driven by surging demand for advanced AI memory products. Revenue climbed 257% year over year, while operating profit jumped 557%, and the company commenced mass shipments of its next-generation HBM4 memory. SK hynix, South Korea's largest dedicated memory chipmaker and a primary supplier of high-bandwidth memory (HBM) to AI accelerator manufacturers, sits at the center of the global AI infrastructure buildout, where HBM has become a critical bottleneck component for data center GPUs.

Record Second-Quarter Financial Performance

SK hynix posted second-quarter revenue of 79.3187 trillion won, representing a 51% increase from the previous quarter. Operating profit reached 60.5426 trillion won, yielding a 76% operating margin. Net income totaled 93.9226 trillion won, up 133% from the first quarter.

On a year-over-year basis, revenue rose from 22.232 trillion won in the prior-year second quarter. Operating profit increased from 9.2129 trillion won, while net income surged 1,242% from 6.9962 trillion won.

High-value memory products fueled sharp gains across the company's primary business lines and reinforced its pricing power. Rising DRAM and NAND prices further boosted profitability and cash generation. The company's cash position reached 88 trillion won, while debt declined to 18.6 trillion won, leaving net cash at 69.4 trillion won. The scale of the year-over-year improvement reflects a dramatic reversal for the memory industry, which weathered a severe downturn in 2023 driven by oversupply and weak post-pandemic demand before AI-related orders reignited pricing and volumes.

HBM4 Mass Shipments Begin

SK hynix initiated mass shipments of HBM4 during the second quarter. The new product met customer speed specifications while delivering improvements in power efficiency and production cost effectiveness. The company intends to scale HBM4 output through the remainder of the year.

HBM4E samples were also delivered to customers during the first half of 2026. SK hynix said it selected stable manufacturing processes to support future volume production and continued to enhance yields, product quality, and supply reliability.

Expanding artificial intelligence infrastructure continues to drive global memory market demand. Major technology companies have increased spending on computing systems, servers, and data centers, strengthening demand for HBM, server DRAM, enterprise SSDs, and conventional memory products. SK hynix's early move to volume HBM4 shipments positions it ahead of rivals Samsung Electronics and Micron Technology, both of which are aggressively expanding their own HBM programs to compete for AI accelerator supply contracts.

Long-Term Supply Agreements and Capacity Expansion

SK hynix has completed long-term supply agreements with approximately 10 customers, including several strategic partners. These multi-year contracts support stable supply planning across high-growth memory products. The company remains in negotiations with other large industry customers.

To address demand that exceeds current supply, SK hynix accelerated its M15X production schedule. The company expects its Yongin Phase 1 cleanroom to open in early 2027. Additional projects in progress include the P&T7 packaging facility and the planned M17 NAND production base.

321-layer NAND products now represent the largest share of SK hynix's total production. The company plans to increase their share to approximately half of domestic output by year-end. SK hynix stated it will phase investments based on customer demand, production efficiency, financial strength, and capital discipline.