South Korean memory maker is down 60% from its record high hit just one month ago. Talk about froth.
📉 Records Weren't Record Enough
- SK Hynix delivered eye-popping numbers for the second quarter, reporting operating profit of about $42 billion, up 557% from a year ago.
- Revenue climbed 257% to roughly $55 billion, marking another quarterly record for the AI memory-chip supplier.
- But Wall Street wanted even more. Revenue missed expectations of roughly $61 billion, while operating income came in around $44 billion, below analyst forecasts of approximately $46 billion.
- Investors wasted no time hitting the sell button. SK Hynix shares plunged more than 16% in Seoul, extending and dragging South Korea's at one point. Rival Samsung Electronics fell nearly 12%.
🤖 AI Expectations Bite Back
- The results underscore just how demanding investors have become toward AI leaders. SK Hynix has been one of the biggest beneficiaries of booming demand for high-bandwidth memory, or HBM chips, which are essential for training and running advanced AI models.
- Despite reporting quarterly records across revenue, operating profit and operating margin, the company couldn't clear Wall Street's increasingly lofty bar. That's becoming a familiar theme across the AI trade: good results no longer guarantee a good reaction.
- Shares have fallen roughly 60% from last month's record high, yet they're still up about 540% from a year ago. Momentum can be powerful on the way up and equally unforgiving on the way down.
🔮 Outlook Stays Surprisingly Bright
- Management struck an optimistic tone despite the selloff, maintaining its bullish outlook for the second half of 2026. The company expects tight supply and strong demand for AI memory chips to continue supporting the market.
- US-listed fell another 7% after hours following a 9% decline during the regular session.
- An ADR is a US-traded certificate that allows investors to buy shares of a foreign company without trading on its home exchange.