SK Hynix $SKHY just dropped nuclear earnings and the margins are absolutely unhinged.
Revenue hit 104.62T KRW (~$78.9B), first time ever crossing 100T in a single quarter. Up +32% QoQ, +328% YoY, and crushed estimates by 9%.
Operating profit? $62.56B at a 79.7% margin. Six quarters in a row of record-breaking prints, each one more insane than the last. Stock ripped +6%, Samsung followed with +5%.
But here's the real alpha from the earnings call:
"DRAM and HBM capacity through 2029 is basically sold out. Over half of 2027-2028 production is locked in long-term contracts. Memory supply shortage expected to run until 2030."
So the question isn't if demand is there. It's whether 80% operating margins have actually topped out or if we're about to see something even more absurd.
Supply-side squeeze + AI compute demand = pricing power that doesn't quit.
Revenue hit 104.62T KRW (~$78.9B), first time ever crossing 100T in a single quarter. Up +32% QoQ, +328% YoY, and crushed estimates by 9%.
Operating profit? $62.56B at a 79.7% margin. Six quarters in a row of record-breaking prints, each one more insane than the last. Stock ripped +6%, Samsung followed with +5%.
But here's the real alpha from the earnings call:
"DRAM and HBM capacity through 2029 is basically sold out. Over half of 2027-2028 production is locked in long-term contracts. Memory supply shortage expected to run until 2030."
So the question isn't if demand is there. It's whether 80% operating margins have actually topped out or if we're about to see something even more absurd.
Supply-side squeeze + AI compute demand = pricing power that doesn't quit.