AI chip stocks traded lower Wednesday after SK hynix (SKHY) reported second-quarter results that fell short of market expectations, even as the company said demand for AI memory chips remained strong.
SK hynix posted second-quarter revenue of 79.32 trillion won, up 257% from a year earlier, while operating profit climbed to 60.5 trillion won from 9.2 trillion won. However, both figures missed analyst estimates. The company said shipment delays for some advanced memory products limited pricing gains for its DRAM chips. Even so, SK hynix said major technology companies continue to increase AI infrastructure spending and that it has signed long-term supply agreements with about 10 customers.
The results pressured semiconductor shares globally. Samsung Electronics fell about 5% in South Korea, while Japan's Tokyo Electron dropped nearly 11% and Kioxia slid about 14%. In the U.S., Nvidia NASDAQ:NVDA fell about 3%, Micron Technology NASDAQ:MU declined about 3%, Advanced Micro Devices NASDAQ:AMD dropped nearly 6%, Qualcomm (QCOM) lost nearly 3%, and Broadcom NASDAQ:AVGO slipped about 2%.
The broader technology sector also weakened, with Applied Materials NASDAQ:AMAT, Lam Research (LRCX), Taiwan Semiconductor Manufacturing (TSM), Marvell Technology (MRVL) and KLA (KLAC) all trading lower as investors assessed the earnings report alongside continued uncertainty over memory pricing and AI-related demand.