Samsung and SK Hynix released their earnings reports this week, both achieving historic profits amid the AI memory boom. However, there were significant differences in the quality of earnings, long-term order lock-in, and shareholder return plans. Samsung's revenue and profit were larger in absolute terms, and its HBM4 is rapidly catching up, but its net profit fell short of expectations, and the lack of clarity in its shareholder return plan dampened market confidence. Hynix, on the other hand, boasted an operating profit margin of 80%, clear long-term contract coverage, and a more specific cash dividend and share buyback program, leading to a surge in its stock price after the earnings release.
