Samsung Electronics and SK hynix both reported record third-quarter results, but their shares moved in opposite directions. Samsung fell 4.1% in South Korean trading on Thursday, while SK hynix gained 19.2% over the week. Investors are focused not only on AI-related memory demand, but also on the clarity of shareholder returns and how long elevated chip prices can last.
Samsung sets records for revenue and operating profit
Samsung reported third-quarter revenue of 19.53 trillion won, about $145.8 billion, and operating profit of 10.74 trillion won, about $80.4 billion. Both were records, with operating profit up 782.5% from a year earlier. The company said it was the first South Korean technology company to post operating profit above 10 trillion won.
SK hynix reported revenue of 10.46 trillion won, about $78.1 billion, and operating profit of 8.33 trillion won, about $62.2 billion. Revenue exceeded 10 trillion won for the first time. Both companies beat their own expectations and analyst estimates, but investors interpreted the results and the companies’ next steps differently.
Unclear payout details weigh on Samsung
Samsung shares rose ahead of the results, then reversed course to close down 4.1% on Thursday, giving back some of the previous day’s semiconductor rally. The near-term disappointment centered less on the earnings figures than on the lack of detail about how Samsung will distribute additional returns to shareholders.
The company has announced a total third-quarter dividend of 30 trillion won, about $22.4 billion, and separately pledged to return another 55 trillion to 75 trillion won to shareholders. It has yet to specify how much will come through cash dividends and how much through share buybacks. A decision has been deferred to a board meeting in late January. Both buybacks and cash dividends can benefit long-term shareholders, but the timing and form of any near-term cash payment remain uncertain.
SK hynix has set out a more specific plan. It has pledged to return 100 billion won to shareholders this year, including at least 30 billion won in dividends. On Wednesday, it announced a third-quarter dividend of 14 billion won and a 20 billion won share buyback. The company had completed a separate 40 billion won buyback announced in August the previous week. The dividend is 20,000 won per share, half funded from earnings and half as a special dividend linked to proceeds from its investment in Japan’s Kioxia Holdings.
Samsung, SK hynix and Micron shares diverge
SK hynix focuses on high-bandwidth memory (HBM), used in processors that support AI computing. Samsung has a broader business spanning consumer electronics and memory chips, though memory drove much of its record performance this quarter. US-based Micron Technology fell 4.0% on Thursday, close to Samsung’s decline. Micron last reported results on September 30 and had no new company announcement that day; its drop reflected spillover from disappointment with Samsung and Alphabet, Google’s parent.
Semiconductor stocks have often seen a “sell the news” response, as investor expectations rise and even results above forecasts fail to guarantee a share-price gain. At the same time, major cloud providers including Alphabet, Amazon, Meta, Microsoft and Oracle continue to invest in AI infrastructure. SpaceX is also among the large buyers cited in the market. That spending could support memory demand, though concerns that cloud companies are investing too aggressively can also weigh on suppliers.
Rising memory prices raise cycle questions
Price trends across different types of memory are becoming a key market focus. Industry data provider TrendForce and its DRAMeXchange business report that HBM contract prices rose 70% to 140%, while server DRAM prices climbed 270%. DRAM used in conventional PCs and laptops rose 150% to 200%. Those products are more mature and commoditized, and have typically faced long-term pricing pressure, making the scale of the increases a source of questions about how sustainable the cycle is.
SK hynix’s third-quarter operating margin reached 80%, reflecting tight supply and high prices, but also leaving earnings exposed if those conditions ease. The company expects a structural supply-demand imbalance in memory to persist through 2030 and says customers have booked capacity for all of 2027 and part of 2028. Samsung expects AI infrastructure spending to continue into next year, supporting demand for HBM, server DRAM and solid-state drives. It expects AI-driven demand growth to significantly outpace industry supply growth in 2026.
TrendForce forecasts that HBM prices will rise 122% in 2027 and the overall DRAM market will grow 46%. But manufacturers’ preference for HBM production could squeeze supply of lower-end PC chips, with total PC chip output expected to edge down in 2027. Expanding semiconductor manufacturing capacity takes years and requires billions of dollars. TSMC has earmarked $265 billion for expansion of its large wafer fabrication complex in Phoenix, Arizona, but the added capacity will not come online immediately. IDC does not expect chip prices to return to 2025 levels during 2027.
Low-end DRAM prices remain a key indicator
The current combination of high prices and tight supply has historical precedents for a reversal. Samsung shares fell nearly 40% between spring and the end of 2024, when a memory-chip supply glut weighed on the market. Prices for conventional DRAM and other lower-end products offer a way to track whether competitive pressure is returning. Chinese memory maker ChangXin Memory Technologies (CXMT) could also become part of the supply competition in lower-end chips.
Kioxia’s share price illustrates the volatility across the semiconductor sector. As of June 22, 2026, when it set a record closing high, the stock was up 941.8% from the end of the previous year; it later fell 60.0% from that peak. SK hynix’s investment in Kioxia is also tied to its special dividend. For memory stocks, the practical indicators to watch alongside AI orders and earnings are the execution of shareholder-return plans and whether prices for conventional DRAM begin to weaken.