The most powerful chipmaker in the world within the next six years will be SK Hynix, not Taiwan Semiconductor Manufacturing Company. It should be noted that this coincides with the prolonged AI–powered “super cycle” in the memory semiconductor sector, which is expected to begin at a minimum in 2027. It has to be noted that SK Hynix’s operating profit will be 128 trillion won in 2027, according to Japanese investment bank Nomura Securities. At the same time, TSMC’s operating profit will be lower than SK Hynix’s. Essentially, the surge in Demand has led AI market leaders to already book every one of its fabs for the following year, as booming AI infrastructure demands on memory —from DRAM to NAND to high–bandwidth memory chips.
For example, SK Hynix’s third-quarter 2025 financial statement was a record high, achieving an operating profit of about 11.38 trillion won and revenue of 24.45 trillion won, driven by high prices and shipments of AI-focused memory products. In the future, to respond to the increase in Demand, scaling up of the capital is drastically planned, and, on the other hand, there is a strong demand for its own AI server use HBM “super cycle” target stock price was raised by Nomura by over 55%, which is optimistic. Since the “super cycle” is driven by limited semiconductor manufacturing capacity, supply is expected to remain constrained until at least FY27, further boosting unit prices and revenue growth.
TSMC, on the other hand, even though benefiting from AI chip demand with record profits and revenue forecasts being raised, is hampered by US-imposed tariffs and supply chain uncertainties that are restricting growth, versus SK Hynix’s memory-focused market segment. The changing factor implies that the advanced memory technologies required for AI data centers are becoming more vital. Thus, advanced memory chip makers like SK Hynix will be more profitable producers than traditional foundry specialists like TSMC by 2027.
SK Hynix’s Profit Growth Drivers
- AI-Induced Demand: quicker acquisition of memory chips for inference applications, cloud data centers, and AI servers.
- Complete Capacity Booking: SK Hynix has already sold its DRAM, NAND, and HBM production through 2026, ensuring steady income.
- Advanced Products: Leading the way in cutting-edge memory products, such as 12-layer HBM3E, with shipments of HBM4 beginning in Q4 2025.
- Price Growth: DRAM and NAND prices are expected to increase significantly (by 57% and 65%, respectively, in 2026).
TSMC’s Current Position and Challenges
- AI chip manufacturing is driving strong growth in sales and profits.
- There are US tariffs and global trade uncertainties, which could limit growth.
- Expected revenue growth of around 30% in 2025.
Industry Outlook
- The “super cycle” in semiconductors is expected to last until at least 2027.
- There aren’t enough memory chips to meet Demand because new fabs take a long time to build and have limited capacity.
- AI infrastructure needs have changed the balance of power from foundries to memory chipmakers.
This transformational forecast shows that DemandK Hynix is now the most profitable chipmaker. This change is due to AI memory technologies becoming increasingly critical for next-generation computing.