DRAM (includes HBM)Narrow moat

SK hynix (SKHY) — moat facet

DRAM went from less than two-thirds of a loss-making company to ₩97.6 trillion in half a year, on price more than volume.

DRAM is where SK hynix makes its money, and in 2025 it was more than three-quarters of revenue. The line brought in ₩74,904 billion, against ₩44,732 billion in 2024 and ₩20,769 billion in 2023, a 3.6-fold increase in two years.12

DRAM revenue, year on year growth (%)+115.4%2024+67.5%2025+189.7%Q1 2026+232.8%Q2 2026SK hynix Form 424B4 prospectus and H1 2026 semi-annual report
Growth accelerated again in 2026, after a year in which it had nearly halved.

What is inside the line is every kind of dynamic memory SK hynix makes: server modules, mobile and PC memory, and high-bandwidth memory, the stacked DRAM sold with AI accelerators. The company does not break HBM out as revenue; it reports only that it held 56.4% of the HBM market in the first quarter of 2026.3

The history the filings show begins in the bust. In 2023 total cost of sales exceeded revenue, and DRAM revenue of ₩20,769 billion was less than two-thirds of a company that lost money for the year.45 The next two years reversed it. DRAM revenue rose 115.4% in 2024 and 67.5% in 2025, in each case, the filing says, on a higher average selling price, a larger sales volume and a weaker won.6 The price rise it attributes to demand for premium products such as HBM.7

It is paid by the gigabyte at prices agreed with customers monthly and quarterly, with no order backlog.8 That is why the line moves so fast in both directions, and why the page No Backlog, and What That Buys treats it as the company's defining arrangement.

Profitability by product is not disclosed; SK hynix has a single reportable segment.9 The company's operating margin, 76.3% in the second quarter of 2026, is mostly this line's, since DRAM was 71.8% of that quarter's revenue.1011

The growth has accelerated through 2026. DRAM revenue was ₩40,659 billion in the first quarter, up 189.7%, and ₩56,983 billion in the second, up 233%.121314 First-half DRAM revenue was ₩97,641 billion, already more than all of 2025.15

The share of the market has not kept pace. SK hynix's share of DRAM revenue was 34.8% for 2025 and 29.1% in the first quarter of 2026, according to IDC figures in the semi-annual report.16 TrendForce put it second, behind Samsung, with DRAM revenue up 62.5% in that quarter against Samsung's 93.4%.17

The outlook is set by other people's capital budgets. The largest buyer of HBM had purchase commitments of about $279 billion at its latest quarter, most of it memory.18 SK hynix's own new capacity, the first Yongin fab, has its cleanroom due in the first quarter of 2027.19

This is a narrow moat: a three-producer market and a lead in the one product that is not a commodity, sold at prices reset every quarter. The number that would change the view is first-half DRAM revenue, ₩97.6 trillion in 2026 against ₩31.2 trillion a year earlier. A second half below the first while capacity is still arriving would mark the top of the cycle.

Moat trajectory: Holding steady

Revenue up 233% in the June 2026 quarter, but SK hynix's DRAM share fell from 34.8% to 29.1% while rivals grew faster.

The number that tests this moat
Reported
DRAM revenue, first half
₩97.6tn in H1 2026, from ₩31.2tn a year earlier

A second half below the first while new capacity is still arriving would mark the top of the cycle.

Source: SK hynix semi-annual business report, H1 2026 ↗
References
  1. ReportedThe line brought in ₩74,904 billion, against ₩44,732 billion in 2024 and ₩20,769 billion in 2023, a 3.6-fold increase in two years.
    SK hynix Form 424B4 prospectus (July 2026) - revenue by product 2023-2025: DRAM W20,768,662M/W44,731,664M/W74,904,134M, NAND flash W9,653,061M/W19,274,112M/W20,690,084M, others W2,343,996M/W2,187,184M/W1,552,457M of W32,765,719M/W66,192,960M/W97,146,675M; Q1 2026 DRAM W40,658,636M (W14,036,870M), NAND W11,574,235M (W3,228,835M); MD&A: DRAM revenue +115.4% in 2024 and +67.5% in 2025 on higher ASP, volume and a weaker won, ASP rise reflecting demand for premium products such as HBM; NAND +99.7% in 2024 on ASP and the won, +7.3% in 2025 on volume and the won partly offset by a lower ASP; Q1 2026 DRAM +189.7%, NAND +258.5%; a single reportable segment; foundry through SK hynix system ic and SK keyfoundry; Solidigm; NAND moving from 176-layer to 238- and 321-layer technologies; competitors named; HBM share 56.4% (Q1 2026); Yongin fab 1 cleanroom due Q1 2027 — FY2023-Q1 2026 · publ. July 2026 · source ↗
  2. Moat Explorer calcThe line brought in ₩74,904 billion, against ₩44,732 billion in 2024 and ₩20,769 billion in 2023, a 3.6-fold increase in two years.
    Moat Explorer calculation from SK hynix's Form 424B4 prospectus and H1 2026 semi-annual report: product shares of revenue and growth rates as stated — 2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. ReportedThe company does not break HBM out as revenue; it reports only that it held 56.4% of the HBM market in the first quarter of 2026.
    SK hynix Form 424B4 prospectus (July 2026) - revenue by product 2023-2025: DRAM W20,768,662M/W44,731,664M/W74,904,134M, NAND flash W9,653,061M/W19,274,112M/W20,690,084M, others W2,343,996M/W2,187,184M/W1,552,457M of W32,765,719M/W66,192,960M/W97,146,675M; Q1 2026 DRAM W40,658,636M (W14,036,870M), NAND W11,574,235M (W3,228,835M); MD&A: DRAM revenue +115.4% in 2024 and +67.5% in 2025 on higher ASP, volume and a weaker won, ASP rise reflecting demand for premium products such as HBM; NAND +99.7% in 2024 on ASP and the won, +7.3% in 2025 on volume and the won partly offset by a lower ASP; Q1 2026 DRAM +189.7%, NAND +258.5%; a single reportable segment; foundry through SK hynix system ic and SK keyfoundry; Solidigm; NAND moving from 176-layer to 238- and 321-layer technologies; competitors named; HBM share 56.4% (Q1 2026); Yongin fab 1 cleanroom due Q1 2027 — FY2023-Q1 2026 · publ. July 2026 · source ↗
  4. ReportedIn 2023 total cost of sales exceeded revenue, and DRAM revenue of ₩20,769 billion was less than two-thirds of a company that lost money for the year.
    SK hynix Form 424B4 prospectus (July 2026) - revenue by product 2023-2025: DRAM W20,768,662M/W44,731,664M/W74,904,134M, NAND flash W9,653,061M/W19,274,112M/W20,690,084M, others W2,343,996M/W2,187,184M/W1,552,457M of W32,765,719M/W66,192,960M/W97,146,675M; Q1 2026 DRAM W40,658,636M (W14,036,870M), NAND W11,574,235M (W3,228,835M); MD&A: DRAM revenue +115.4% in 2024 and +67.5% in 2025 on higher ASP, volume and a weaker won, ASP rise reflecting demand for premium products such as HBM; NAND +99.7% in 2024 on ASP and the won, +7.3% in 2025 on volume and the won partly offset by a lower ASP; Q1 2026 DRAM +189.7%, NAND +258.5%; a single reportable segment; foundry through SK hynix system ic and SK keyfoundry; Solidigm; NAND moving from 176-layer to 238- and 321-layer technologies; competitors named; HBM share 56.4% (Q1 2026); Yongin fab 1 cleanroom due Q1 2027 — FY2023-Q1 2026 · publ. July 2026 · source ↗
  5. Moat Explorer calcIn 2023 total cost of sales exceeded revenue, and DRAM revenue of ₩20,769 billion was less than two-thirds of a company that lost money for the year.
    Moat Explorer calculation from SK hynix's Form 424B4 prospectus and H1 2026 semi-annual report: product shares of revenue and growth rates as stated — 2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  6. ReportedDRAM revenue rose 115.4% in 2024 and 67.5% in 2025, in each case, the filing says, on a higher average selling price, a larger sales volume and a weaker won.
    SK hynix Form 424B4 prospectus (July 2026) - revenue by product 2023-2025: DRAM W20,768,662M/W44,731,664M/W74,904,134M, NAND flash W9,653,061M/W19,274,112M/W20,690,084M, others W2,343,996M/W2,187,184M/W1,552,457M of W32,765,719M/W66,192,960M/W97,146,675M; Q1 2026 DRAM W40,658,636M (W14,036,870M), NAND W11,574,235M (W3,228,835M); MD&A: DRAM revenue +115.4% in 2024 and +67.5% in 2025 on higher ASP, volume and a weaker won, ASP rise reflecting demand for premium products such as HBM; NAND +99.7% in 2024 on ASP and the won, +7.3% in 2025 on volume and the won partly offset by a lower ASP; Q1 2026 DRAM +189.7%, NAND +258.5%; a single reportable segment; foundry through SK hynix system ic and SK keyfoundry; Solidigm; NAND moving from 176-layer to 238- and 321-layer technologies; competitors named; HBM share 56.4% (Q1 2026); Yongin fab 1 cleanroom due Q1 2027 — FY2023-Q1 2026 · publ. July 2026 · source ↗
  7. ReportedThe price rise it attributes to demand for premium products such as HBM.
    SK hynix Form 424B4 prospectus (July 2026) - revenue by product 2023-2025: DRAM W20,768,662M/W44,731,664M/W74,904,134M, NAND flash W9,653,061M/W19,274,112M/W20,690,084M, others W2,343,996M/W2,187,184M/W1,552,457M of W32,765,719M/W66,192,960M/W97,146,675M; Q1 2026 DRAM W40,658,636M (W14,036,870M), NAND W11,574,235M (W3,228,835M); MD&A: DRAM revenue +115.4% in 2024 and +67.5% in 2025 on higher ASP, volume and a weaker won, ASP rise reflecting demand for premium products such as HBM; NAND +99.7% in 2024 on ASP and the won, +7.3% in 2025 on volume and the won partly offset by a lower ASP; Q1 2026 DRAM +189.7%, NAND +258.5%; a single reportable segment; foundry through SK hynix system ic and SK keyfoundry; Solidigm; NAND moving from 176-layer to 238- and 321-layer technologies; competitors named; HBM share 56.4% (Q1 2026); Yongin fab 1 cleanroom due Q1 2027 — FY2023-Q1 2026 · publ. July 2026 · source ↗
  8. ReportedIt is paid by the gigabyte at prices agreed with customers monthly and quarterly, with no order backlog.
    SK hynix semi-annual business report, January-June 2026 (Form 6-K) - Q2 2026 revenue by product DRAM W56,982,743M, NAND W21,959,898M, others W376,105M of W79,318,746M (Q2 2025 W17,123,990M, W4,727,806M, W380,156M of W22,231,952M); six months DRAM W97,641,379M, NAND W33,534,133M (2025 W31,160,860M, W7,956,641M); operating profit W60,542,608M; IDC shares DRAM 29.9%/33.4%/34.8%/29.1% and NAND 19.6%/21.4%/20.9%/18.5% (2023, 2024, 2025, Q1 2026); supply volumes and prices determined monthly and quarterly with no order backlog — H1 2026 · publ. August 2026 · source ↗
  9. ReportedProfitability by product is not disclosed; SK hynix has a single reportable segment.
    SK hynix Form 424B4 prospectus (July 2026) - revenue by product 2023-2025: DRAM W20,768,662M/W44,731,664M/W74,904,134M, NAND flash W9,653,061M/W19,274,112M/W20,690,084M, others W2,343,996M/W2,187,184M/W1,552,457M of W32,765,719M/W66,192,960M/W97,146,675M; Q1 2026 DRAM W40,658,636M (W14,036,870M), NAND W11,574,235M (W3,228,835M); MD&A: DRAM revenue +115.4% in 2024 and +67.5% in 2025 on higher ASP, volume and a weaker won, ASP rise reflecting demand for premium products such as HBM; NAND +99.7% in 2024 on ASP and the won, +7.3% in 2025 on volume and the won partly offset by a lower ASP; Q1 2026 DRAM +189.7%, NAND +258.5%; a single reportable segment; foundry through SK hynix system ic and SK keyfoundry; Solidigm; NAND moving from 176-layer to 238- and 321-layer technologies; competitors named; HBM share 56.4% (Q1 2026); Yongin fab 1 cleanroom due Q1 2027 — FY2023-Q1 2026 · publ. July 2026 · source ↗
  10. ReportedThe company's operating margin, 76.3% in the second quarter of 2026, is mostly this line's, since DRAM was 71.8% of that quarter's revenue.
    SK hynix semi-annual business report, January-June 2026 (Form 6-K) - Q2 2026 revenue by product DRAM W56,982,743M, NAND W21,959,898M, others W376,105M of W79,318,746M (Q2 2025 W17,123,990M, W4,727,806M, W380,156M of W22,231,952M); six months DRAM W97,641,379M, NAND W33,534,133M (2025 W31,160,860M, W7,956,641M); operating profit W60,542,608M; IDC shares DRAM 29.9%/33.4%/34.8%/29.1% and NAND 19.6%/21.4%/20.9%/18.5% (2023, 2024, 2025, Q1 2026); supply volumes and prices determined monthly and quarterly with no order backlog — H1 2026 · publ. August 2026 · source ↗
  11. Moat Explorer calcThe company's operating margin, 76.3% in the second quarter of 2026, is mostly this line's, since DRAM was 71.8% of that quarter's revenue.
    Moat Explorer calculation from SK hynix's Form 424B4 prospectus and H1 2026 semi-annual report: product shares of revenue and growth rates as stated — 2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  12. ReportedDRAM revenue was ₩40,659 billion in the first quarter, up 189.7%, and ₩56,983 billion in the second, up 233%.
    SK hynix Form 424B4 prospectus (July 2026) - revenue by product 2023-2025: DRAM W20,768,662M/W44,731,664M/W74,904,134M, NAND flash W9,653,061M/W19,274,112M/W20,690,084M, others W2,343,996M/W2,187,184M/W1,552,457M of W32,765,719M/W66,192,960M/W97,146,675M; Q1 2026 DRAM W40,658,636M (W14,036,870M), NAND W11,574,235M (W3,228,835M); MD&A: DRAM revenue +115.4% in 2024 and +67.5% in 2025 on higher ASP, volume and a weaker won, ASP rise reflecting demand for premium products such as HBM; NAND +99.7% in 2024 on ASP and the won, +7.3% in 2025 on volume and the won partly offset by a lower ASP; Q1 2026 DRAM +189.7%, NAND +258.5%; a single reportable segment; foundry through SK hynix system ic and SK keyfoundry; Solidigm; NAND moving from 176-layer to 238- and 321-layer technologies; competitors named; HBM share 56.4% (Q1 2026); Yongin fab 1 cleanroom due Q1 2027 — FY2023-Q1 2026 · publ. July 2026 · source ↗
  13. ReportedDRAM revenue was ₩40,659 billion in the first quarter, up 189.7%, and ₩56,983 billion in the second, up 233%.
    SK hynix semi-annual business report, January-June 2026 (Form 6-K) - Q2 2026 revenue by product DRAM W56,982,743M, NAND W21,959,898M, others W376,105M of W79,318,746M (Q2 2025 W17,123,990M, W4,727,806M, W380,156M of W22,231,952M); six months DRAM W97,641,379M, NAND W33,534,133M (2025 W31,160,860M, W7,956,641M); operating profit W60,542,608M; IDC shares DRAM 29.9%/33.4%/34.8%/29.1% and NAND 19.6%/21.4%/20.9%/18.5% (2023, 2024, 2025, Q1 2026); supply volumes and prices determined monthly and quarterly with no order backlog — H1 2026 · publ. August 2026 · source ↗
  14. Moat Explorer calcDRAM revenue was ₩40,659 billion in the first quarter, up 189.7%, and ₩56,983 billion in the second, up 233%.
    Moat Explorer calculation from SK hynix's Form 424B4 prospectus and H1 2026 semi-annual report: product shares of revenue and growth rates as stated — 2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  15. ReportedFirst-half DRAM revenue was ₩97,641 billion, already more than all of 2025.
    SK hynix semi-annual business report, January-June 2026 (Form 6-K) - Q2 2026 revenue by product DRAM W56,982,743M, NAND W21,959,898M, others W376,105M of W79,318,746M (Q2 2025 W17,123,990M, W4,727,806M, W380,156M of W22,231,952M); six months DRAM W97,641,379M, NAND W33,534,133M (2025 W31,160,860M, W7,956,641M); operating profit W60,542,608M; IDC shares DRAM 29.9%/33.4%/34.8%/29.1% and NAND 19.6%/21.4%/20.9%/18.5% (2023, 2024, 2025, Q1 2026); supply volumes and prices determined monthly and quarterly with no order backlog — H1 2026 · publ. August 2026 · source ↗
  16. ReportedSK hynix's share of DRAM revenue was 34.8% for 2025 and 29.1% in the first quarter of 2026, according to IDC figures in the semi-annual report.
    SK hynix semi-annual business report, January-June 2026 (Form 6-K) - Q2 2026 revenue by product DRAM W56,982,743M, NAND W21,959,898M, others W376,105M of W79,318,746M (Q2 2025 W17,123,990M, W4,727,806M, W380,156M of W22,231,952M); six months DRAM W97,641,379M, NAND W33,534,133M (2025 W31,160,860M, W7,956,641M); operating profit W60,542,608M; IDC shares DRAM 29.9%/33.4%/34.8%/29.1% and NAND 19.6%/21.4%/20.9%/18.5% (2023, 2024, 2025, Q1 2026); supply volumes and prices determined monthly and quarterly with no order backlog — H1 2026 · publ. August 2026 · source ↗
  17. Third-party estimateTrendForce put it second, behind Samsung, with DRAM revenue up 62.5% in that quarter against Samsung's 93.4%.
    TrendForce DRAM ranking, 1Q26 - Samsung $37.32bn, +93.4% QoQ, 38.5%; SK hynix $27.98bn, +62.5%, second with 28.8%; Micron $21.75bn, +81.6%, 22.4% — Q1 2026 · publ. 2026-06-01 · source ↗
  18. ReportedThe largest buyer of HBM had purchase commitments of about $279 billion at its latest quarter, most of it memory.
    NVIDIA CFO commentary, Q2 fiscal 2027 - purchase commitments of about $279 billion, from about $119 billion, primarily memory procurement — Q2 FY2027 · publ. August 2026 · source ↗
  19. ReportedSK hynix's own new capacity, the first Yongin fab, has its cleanroom due in the first quarter of 2027.
    SK hynix Form 424B4 prospectus (July 2026) - revenue by product 2023-2025: DRAM W20,768,662M/W44,731,664M/W74,904,134M, NAND flash W9,653,061M/W19,274,112M/W20,690,084M, others W2,343,996M/W2,187,184M/W1,552,457M of W32,765,719M/W66,192,960M/W97,146,675M; Q1 2026 DRAM W40,658,636M (W14,036,870M), NAND W11,574,235M (W3,228,835M); MD&A: DRAM revenue +115.4% in 2024 and +67.5% in 2025 on higher ASP, volume and a weaker won, ASP rise reflecting demand for premium products such as HBM; NAND +99.7% in 2024 on ASP and the won, +7.3% in 2025 on volume and the won partly offset by a lower ASP; Q1 2026 DRAM +189.7%, NAND +258.5%; a single reportable segment; foundry through SK hynix system ic and SK keyfoundry; Solidigm; NAND moving from 176-layer to 238- and 321-layer technologies; competitors named; HBM share 56.4% (Q1 2026); Yongin fab 1 cleanroom due Q1 2027 — FY2023-Q1 2026 · publ. July 2026 · source ↗
Sources
Generated September 23, 2026