SK Hynix Drives Chip Stocks Higher Premarket

Dow Jones10-28 19:52

SK Hynix's blockbuster earnings are driving early-morning gains in chip stocks.

The world's second-largest memory chip maker said its net profit more than tripled in the third quarter, and that the shortages that have kept its products in hot demand are set to drag on for years.

"The company's DRAM and high-bandwidth memory supply for the next three years, through 2029, is effectively sold out," said Joon Deok Park, head of SK Hynix's DRAM marketing.

Shares in SK Hynix finished 10% higher in Seoul. Newly announced plans to return a total of $75 billion to shareholders probably didn't hurt, either.

Here's the market reaction:

-- SK Hynix's American depositary receipts gained almost 8%.

-- Samsung's stock rose 9%.

-- U.S. chip stocks, Micron Technology and Sandisk, gained over 4% in pre-market trading.

-- Shares in Intel gained 2% ahead of the opening bell. Nvidia stock rose 1%.

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