SK Hynix reported a net profit of 93.92 trillion won ($64.6 billion) for the second quarter of 2026, up 1242.5% from a year earlier, as surging demand for its high-bandwidth memory (HBM) chips used in artificial intelligence drove record earnings. Operating profit rose to 60.54 trillion won, a 557% increase, while revenue climbed 257% to 79.31 trillion won, according to the company’s statement cited by multiple outlets. The operating margin reached a record 76%, surpassing Taiwan’s TSMC, which reported 60.3% for the same period.

The results comfortably beat analyst expectations of a 63.55 trillion won net profit, easing investor fears of an AI bubble. The company attributed the performance to “sustained demand growth from expanding AI infrastructure investments,” which lifted prices for its high-performance server products. SK Hynix now commands 58% of the global HBM market by revenue, ahead of rivals Samsung Electronics (21%) and Micron Technology (21%), research firm Counterpoint Research told Sky News Arabia.

Buoyed by the AI chip boom, SK Hynix surpassed Samsung Electronics in market capitalisation in June, becoming the most valuable listed company in South Korea for the first time in 25 years, as reported by Kommersant and Sky News Arabia. The company ended June with a net cash position of 88 trillion won, according to CNN Brasil, and plans to increase it to over 100 trillion won to meet customer demand and stabilise operations.

Looking ahead, SK Hynix said it has concluded about ten long-term supply contracts with major clients, incorporating financial mechanisms such as deposits to improve demand visibility. The company also raised its 2026 capital expenditure target to the 40 trillion won range, up from 30.173 trillion won in 2025, reflecting confidence in sustained AI-driven demand. The next milestone to watch is the ramp-up of its new chip packaging and testing plant in Cheongju, South Korea, which is set to reach full capacity by 2028.