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- Connor Quincy via Fast Company
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Memory chip stocks rise as SK Hynix reports record quarterly sales
ReMemory chip stocks rise as SK Hynix reports record quarterly sales
Shares of SK Hynix closed up 10.89 percent after third-quarter results beat Wall Street expectations, lifting U.S. memory chipmakers Micron and Sandisk in premarket trading.
Memory chip stocks, which have had a rough stretch recently, may be turning around. Shares of SK Hynix Inc. closed up 10.89 percent on Wednesday after the South Korean company reported better-than-expected third-quarter results, including more than 100 trillion won in sales for the first time.
SK Hynix reported revenue of 104.62 trillion won ($78.13 billion), ahead of the 98.34 trillion won Wall Street had expected, according to consensus estimates cited by CNBC. That represented a 328 percent year-over-year increase. Operating profit came in at 83.33 trillion won ($62.22 billion), above the predicted 76.72 trillion won and up 632 percent from a year earlier. The company also said it plans to return about 100 trillion won to shareholders this year.
At the close of trading, SK Hynix shares were up 128.42 percent for the year to date but down 16.27 percent over the past 30 days. The company's U.S.-listed shares, which trade on the Nasdaq under the ticker SKHY, were up more than 7 percent in premarket trading on Wednesday.
Samsung Electronics, SK Hynix's South Korean rival, also rose, closing up 9.01 percent. Its stock is up 101.83 percent year to date but down 9.87 percent for the month. South Korea's KOSPI index, on which both companies trade, closed up 6.63 percent, though it is down 12.73 percent for the month.
American memory chipmakers followed the move in premarket trading. Micron Technology Inc. (Nasdaq: MU) was up 3.97 percent, and Sandisk Corp. (Nasdaq: SNDK) rose 4.91 percent.
Memory stocks have benefited this year from a shortage driven by the buildout of artificial intelligence infrastructure. However, the shares cooled after hitting record highs over the summer, which is why the strong SK Hynix report is being read as a sign that demand for memory chips remains high.
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