SK hynix Inc.

Record results driven by AI memory tight supply (strong “good”): - Revenue: KRW 104.6T in 3Q26 (+32% QoQ, +328% YoY) — first time quarterly revenue > KRW 100T. - Profitability: Operating profit KRW 83.3T (+38% QoQ, +632% YoY); operating margin 80% (+3pp QoQ, all-time quarterly records). - Business drivers: price hikes concentrated in HBM, server DRAM, and enterprise SSD; HBM4 mass production started in 3Q; DDR5 server shipments +40% vs 2Q; NAND ASP +mid-20% despite slightly lower bit shipments due to mix optimization.

AI demand/investment momentum seen continuing despite pacing concerns (key outlook “good” but with market skepticism): - Management acknowledges discussion of AI capex pacing, but argues momentum continues due to: - Customer monetization improving (hyperscaler cloud revenue cited as +30% to +80% YoY, with AI as a major contributor; cloud order backlogs 2x–5x YoY; paying users rising). - Broader investor base (beyond big tech): non-tech + sovereign/on-prem demand reduces single-customer cyclicality. - Base expectation: AI infrastructure spending remains robust; supply-demand imbalance expected to persist “for some time” and constraint projected through 2030.

Forecast for 2027: strong growth despite supply limits (investor “need-to-know” numbers): - 2027 demand growth expectation: DRAM mid-20% and NAND high-teen % growth (implying demand remains strong but not unlimited given constraints). - Near-term PCs/mobile volumes expected to decline due to high memory prices/supply shortages, but AI infrastructure more than offsets. - Key theme: memory supply still can’t fully meet demand due to complexity/lead times for leading-edge processes and fabs—so management plans to capitalize on the supply constraint rather than rely on normalization.