SK Hynix Inc. is set to increase its dividend payout by 25% to approximately $2.1 billion from 2025 to 2027, driven by its strong position in the AI memory chip market. The company will distribute 1,500 won per share annually, totaling around 1 trillion won ($720 million), with potential for earlier returns if business performance exceeds expectations.
Samsung Electronics has elevated Jun Young-hyun, head of its semiconductor division, to co-CEO just six months after his appointment. This move underscores the company's commitment to competing with SK Hynix in the AI market, as he will now directly oversee the memory division, a role typically assigned to a subordinate.
SK Hynix is expediting the release of its next-generation AI memory chips, following a request from Nvidia CEO Jensen Huang to provide samples six months earlier than planned. This move highlights the ongoing global demand for advanced semiconductors, particularly high-bandwidth memory chips (HBM4). Huang's focus on speed has been a key factor in his leadership success, as noted by SK Group Chairman Chey Tae-won during the SK AI Summit in Seoul.
Samsung Electronics has experienced a dramatic $122 billion loss in market value, with shares plummeting 32% since July 9, as concerns grow over its competitiveness in AI memory and chipmaking against rivals like SK Hynix and Taiwan Semiconductor Manufacturing. Despite a rebound in profits and strong sales of Galaxy S24 smartphones, international investors remain skeptical about the company's promised overhaul, leading to significant sell-offs of its shares.
Morgan Stanley analysts have revised their price target for SK Hynix Inc. upward, acknowledging their previous assessment was incorrect in the short term, though they still believe the memory cycle peak remains intact. Despite this adjustment, they continue to hold an underweight rating on the stock following the company's record quarterly results.
SK Hynix Inc. achieved a record quarterly profit of 7.03 trillion won ($5.1 billion) in the September quarter, surpassing projections of 6.9 trillion won. Revenue surged 94% to 17.6 trillion won, slightly below the expected 18.2 trillion won, driven by strong demand for memory chips linked to AI development with Nvidia Corp. processors.
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