SK Hynix Operating Profit Forecast to Surpass Microsoft

SK hynix is projected to achieve a historic surge in profitability in 2026, with forecasts suggesting the semiconductor company could outpace the operating profits of global technology giants including Microsoft and Google.

On April 10, 2026, Kang Da-hyun, an analyst at KB Securities, reported that SK hynix’s operating profit for the year is expected to reach 251 trillion won, approximately $167 billion. This figure represents a 432% increase compared to the previous year.

The projection places SK hynix ahead of other industry leaders in terms of operating profit, with Microsoft forecasted at 245 trillion won and Google at 240 trillion won. According to the KB Securities analysis, this trajectory makes the company’s entry into the global top four for operating profit visible.

Drivers of the Memory Supercycle

The anticipated growth is primarily driven by sharp price increases in DRAM and NAND flash memory. KB Securities expects DRAM prices to rise by 170% and NAND flash prices to increase by 190% throughout 2026.

Industry analysis suggests the memory sector has transitioned from a traditional cyclical pattern into a supercycle, characterized by a prolonged boom. This shift is further supported by the emergence of a foundry-type model, where the industry moves toward a structure of pre-orders and post-production through long-term supply contracts extending to 2030.

The demand for high-bandwidth memory (HBM) has also been a critical catalyst for earnings growth. This demand, combined with memory price gains, has led to upward revisions of quarterly estimates for major players in the sector.

Quarterly Profit Projections and Valuation

The growth in operating profit is expected to accelerate throughout the year. KB Securities provided the following quarterly projections for SK hynix’s operating profit:

• First Quarter: 40 trillion won
• Second Quarter: 60 trillion won
• Third Quarter: 71 trillion won
• Fourth Quarter: 80 trillion won

Earlier market estimates cited by brokerages on April 2, 2026, placed SK hynix’s first-quarter operating profit between 36 trillion and 39 trillion won. This is a significant increase from the initial start-of-year forecasts of approximately 31 trillion won and far exceeds the company’s previous quarterly record of 19.17 trillion won set in the fourth quarter of 2025.

Based on these projections, KB Securities calculated SK hynix’s 12-month forward price-to-earnings ratio (PER) at 3.1 times. The analyst noted that this figure is only 38% of the level seen with companies such as Meta, JPMorgan, and TSMC, whose operating profits are expected to be lower than those of SK hynix.

Following these findings, KB Securities raised the 12-month target share price for SK hynix to 1.9 million won, up from the 1.7 million won target set on March 13, 2026.

Broader Industry Context

The trend of record-breaking earnings is extending across the memory industry. Samsung Electronics is also expected to report record first-quarter earnings, with operating profit projected between 40 trillion and 45 trillion won, doubling its previous record of 20.1 trillion won from the fourth quarter of 2025.

Similarly, Micron Technology reported strong results for its fiscal second quarter, which ran from December 2025 to February 2026. Micron’s revenue reached $23.86 billion, surpassing its guidance of $18.7 billion, while its non-GAAP operating profit hit $16.5 billion, exceeding the $11.3 billion estimate.

Market research firm TrendForce confirmed that contract prices for DRAM and NAND rose 90%–95% and 55%–60%, respectively, in the first quarter of 2026 compared to the previous quarter. Further increases are projected for the second quarter, with DRAM prices expected to rise 58%–63% and NAND 70%–75%.

SK hynix is scheduled to officially announce its first-quarter results on April 23, 2026.