Micron Technology Inc. (MU  ) shares are trading higher Wednesday in sympathy with SK Hynix Inc. (SKHY  ), which reported record third-quarter results late Tuesday.

SK Hynix Reports Record Profit, Revenue Above 100 Trillion Won and Sees Shortage Through 2030

SK Hynix reported third-quarter revenue of 104.62 trillion won ($78.8 billion), up 32% from the second quarter and above the 98.34 trillion won estimate, according to CNBC. It was the company's first quarter with revenue above 100 trillion won. Operating profit was a record 83.33 trillion won, up 632% from a year earlier and above analysts' estimate of about 76.7 trillion won, for an operating margin of about 80%.

SK Hynix said it expects demand for memory chips to exceed supply through 2030. DRAM made up 75% of revenue and NAND 24%, according to Investing.com. Net profit fell 58% from the second quarter to 39.78 trillion won because of non-operating losses. The company plans about 100 trillion won in shareholder returns for 2026, including a 20 trillion won share repurchase.

Why SK Hynix's Results Are a Read-Through for Micron

Micron and SK Hynix make the same products, DRAM and high-bandwidth memory, or HBM, which goes into Nvidia Corporation (NVDA  )'s AI accelerators, so SK Hynix's results speak to the same demand and pricing that drive Micron's business. A record 80% operating margin and a shortage that SK Hynix expects to last through 2030 point to strong pricing across the industry. Samsung had also reported record preliminary third-quarter operating profit of 107.4 trillion won, according to TrendForce. Micron shares had slid earlier this month on concerns about growing competition from Chinese memory makers, according to MarketWatch, so the results also address worries about the sector's outlook.

Micron Shares Edge Higher

MU Price Action: At the time of publication, Micron shares are trading 5.28% higher at $977.79, according to data from Benzinga Pro.