SK Hynix's stock took a sharp hit, closing down nearly 9% on Tuesday after the company revealed quarterly results that missed Wall Street’s expectations despite impressive year-over-year gains. The South Korean memory chip giant pulled back from recent highs, with shares ending at $130.17 before a modest rebound in after-hours trading lifted them to around $132.39.
The company reported operating profit of 60.5 trillion won ($42 billion) for the April-June quarter. While this was a striking 557% jump compared to last year, it still fell short of analysts’ forecast of 64.2 trillion won. Revenue also came in under pressure, hitting 79.3 trillion won against expectations of 83.9 trillion won. Yet net income soared over 1,200%, boosted partly by one-off investment gains, exceeding market estimates.
Growing Doubts on AI-Driven Chip Demand
The disappointment triggered fresh worries that the AI boom fueling semiconductor stocks, including SK Hynix’s recent surge, might be losing steam. Brokerages like Mirae Asset Securities have already trimmed profit forecasts, concerned that slower chip price growth could dampen near-term gains. The chipmaker has shed roughly 45% of its value since June, erasing over $500 billion amid skepticism about returns from massive AI infrastructure spending.
Debt worries in the tech sector and fears of higher chip prices pushing up costs for phones, computers, and electronics are adding to the unease. Consumers might pull back if prices rise too fast, forcing manufacturers to slow output. Still, SK Hynix’s CEO Kwak Noh-Jung remains optimistic, citing expectations for prolonged memory shortages driven by expanding AI workloads and cloud services well beyond 2030.
This material is for information only and does not constitute financial advice.
