Nvidia-supplier SK Hynix bets on chip 'super cycle' after booking record profit

Core Viewpoint - SK Hynix has sold out all its chip production for next year and anticipates a prolonged chip "super cycle" driven by the AI boom, following a record quarterly profit [1][4]. Group 1: Financial Performance - SK Hynix reported a record operating profit of 11.4 trillion won ($8.02 billion) for the July-September period, marking a 62% increase from the previous year [4]. - Quarterly revenue rose by 39% in the third quarter to 24.4 trillion won [4]. Group 2: Supply and Demand Dynamics - The company expects supply growth for memory chips to be limited while demand surges, as customers are eager to invest in AI data center infrastructure [2][3]. - A significant number of customers are placing advance orders and seeking long-term contracts due to a chip shortage [3]. - DRAM inventories have fallen to extremely low levels, necessitating immediate shipment of newly produced DDR5 chips to meet demand [6]. Group 3: Future Outlook - SK Hynix has secured full customer demand for its entire DRAM, HBM, and NAND production for next year and plans to start shipping next-generation HBM4 chips in the fourth quarter of this year [5]. - The company anticipates DRAM shipments to grow by over 20% year-on-year in 2026 [5]. - The HBM market is projected to grow annually by over 30% over the next five years, driven by investments from major tech and AI companies [7].