SK Hynix (HXSCL), a South Korean semiconductor manufacturer supplying advanced memory products to NVIDIA NASDAQ:NVDA, fell 9.6% in Wednesday's Seoul trading after record quarterly operating profit missed analysts' expectations. The stock dropped nearly 20% earlier in the session before recovering part of the decline. Operating profit increased more than sixfold as demand for high-bandwidth memory used in AI computing remained strong.
Shipment delays involving some advanced products restricted price increases for SK Hynix's DRAM chips. The company disclosed approximately 10 long-term supply agreements designed to reduce exposure to volatile semiconductor-demand cycles. Analysts warned that these contracts could restrict potential gains if memory prices continue increasing. Investors were also disappointed that management did not provide detailed plans for distributing more of the AI boom's financial benefits through shareholder returns.
SK Hynix shares have lost more than half their value since reaching a record high last month, although they remain approximately 115% higher during 2026. The company's decline contributed to a 6% fall in South Korea's KOSPI index after the benchmark dropped as much as 12.6%. The contrast between sixfold profit growth and a 9.6% stock decline suggests that investor expectations had risen faster than reported earnings. Future attention may center on advanced-product shipment execution, the pricing terms attached to long-term contracts and whether large technology customers maintain planned AI infrastructure expenditure.