SK Hynix’s profits surge sevenfold, operating margin nears 80%; the memory drama continues; Genie 4 enables real-time interactive world simulation; Anthropic acquires a solo-pharma startup | Daily Log

1. SK Hynix’s quarterly profit surges over sevenfold to $62.8 billion: operating margin approaches 80%, and the AI-memory supercycle continues accelerating. South Korea’s memory-chip giant SK Hynix released its Q3 2026 financial results: revenue reached ₩104.6 trillion (approx. $78.9 billion), up 328% year-on-year; operating profit hit ₩83.3 trillion (approx. $62.8 billion), more than seven times the ₩11.4 trillion recorded in the same period last year—setting a new all-time high. Its operating margin stood at approximately 79.6%, up from 76% in Q2. Actual profit exceeded analysts’ consensus forecast (from LSEG) of ₩76.7 trillion by about 8.6%. This stellar performance stems both from robust demand for HBM (High Bandwidth Memory) from AI customers like NVIDIA and from tightening supply-demand dynamics—and consequent price hikes—for DRAM and other memory products driven by AI infrastructure expansion. Notably, SK Hynix’s Q2 operating profit had already reached a record ₩60.5 trillion; Q3 then rose another ~38% quarter-on-quarter—indicating that the industry’s profit expansion is ongoing, not merely a rebound from an exceptionally low base last year. The better-than-expected results help alleviate market concerns about a rapid cooling-off of AI-memory demand. 2. Google DeepMind launches Genie 4: A world model that simulates interactive worlds in real time. Google DeepMind officially unveiled Genie 4—the latest generation of real-time interactive world models—with native audio generation capability: it simultaneously renders visual scenes and generates ambient sounds, music, and character dialogue. Users can navigate environments using keyboard inputs or instantly alter weather, camera angles, or add characters and objects via natural language—without regenerating the entire scene. Under the hood, Genie 4 integrates Gemini Omni’s understanding of the real world with other Gemini models that maintain continuity within simulated environments. Google states Genie 4 can be applied to game development, film previsualization, and training robots and AI agents. Currently, it is available only as a research preview to invited testers. Crucially, the defining capability of a world model isn’t photorealistic video—it’s enabling human actions to change the world, and requiring the model to continuously simulate the consequences of those changes. 3. Axiom completes formal verification of mathematics’ largest proof in 24 days: 43.1 million lines of Lean code, reusing 1.2 million lines from China. AI-math company Axiom announced it has completed the full Lean formalization of the Classification of Finite Simple Groups (CFSG) theorem using dozens of collaborative AI agents—within just 24 days—and publicly released all source code and proof dependency graphs. Finite simple groups are the fundamental building blocks of finite symmetry—akin to prime numbers among integers. The classification theorem proves that all finite simple groups belong to several known families—including 26 sporadic simple groups—earning it the nickname “the periodic table of symmetry.” This monumental collective effort of 20th-century mathematics spanned decades and involved roughly 100 mathematicians. Its original proof was scattered across more than 500 papers totaling some 15,000 pages—hence its alternate moniker, “The Enormous Theorem.”

A trillion-dollar memory giant sees net profit surge 216%; memory chips are already sold out through 2029.

HBM4 will become the mainstream product in Q4. Xin Dongxi (ChipNews) reported on October 28 that SK Hynix today released its Q3 2026 financial results. The company achieved revenue of approximately ₩104.62 trillion (RMB ¥520.65 billion), marking the first time its quarterly revenue has surpassed ₩100 trillion—up 32% quarter-on-quarter and 328% year-on-year. Additionally, its operating profit totaled ₩83.33 trillion (RMB ¥414.70 billion), rising 38% quarter-on-quarter and 632% year-on-year; net profit reached ₩39.78 trillion (RMB ¥197.97 billion), yielding a net margin of 38%—up 216% year-on-year. Its gross profit amounted to ₩89.65 trillion (RMB ¥446.15 billion), with a gross margin of 86%—up 3 percentage points quarter-on-quarter and sharply higher than last year’s 57%. SK Hynix stated that both revenue and operating profit hit record highs this quarter, driven by AI-memory demand pushing up product prices and boosting shipments of high-value-added products. The company’s President & CEO, Rho Jung-woong, noted that, based on already-signed long-term supply agreements (LTAs) plus current and ongoing customer negotiations, DRAM and HBM production capacity is effectively sold out for the next three years—through 2029. SK Hynix forecasts that, constrained by the extreme difficulty of advanced process technologies and lengthy new-fab construction cycles, memory demand will continue to exceed supply through 2030. In Q4, HBM4 shipments and revenue are expected to surpass those of HBM3E, making it the dominant product. Capital expenditures in 2027 will increase significantly over 2026 levels, and the first phase of its Yongin plant will enter full-scale operation. As of yesterday’s market close, SK Hynix’s share price stood at $145.36 per share (RMB ¥969.3), up 1.92% from the previous close of $142.62 (RMB ¥951.1), giving the company a total market capitalization of approximately $103 billion (RMB ¥690 billion). 01. DRAM accounts for over 70% of revenue; shareholder returns projected at ~₩100 trillion this year. SK Hynix’s core businesses are DRAM and NAND flash memory. By product category, DRAM contributed approximately ₩78.5 trillion (RMB ¥390.49 billion) in Q3 revenue—75% of total revenue; NAND generated ₩25.1 trillion (RMB ¥124.96 billion), accounting for 24%; other products made up the remaining 1%. By application, server and graphics-related DRAM (including HBM) revenue shares have risen steadily each quarter, while PC, consumer, and mobile segments have correspondingly shrunk—reflecting AI server demand’s persistent reshaping of DRAM revenue composition. On the NAND side, SSD revenue share has increased annually—from Q3 2025 through Q3 2026—while mobile, USB drive, and memory-card business shares have declined; enterprise SSDs have become NAND’s primary revenue driver. SK Hynix’s guidance indicates DRAM shipment volume is expected to rise ~20% quarter-on-quarter in Q4, primarily driven by 1c-node capacity ramp-up and M15X yield improvement; NAND shipment volume is projected to grow by low single digits quarter-on-quarter (including Solidigm), propelled by sales of 321-layer eSSDs.

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