SK Hynix Posts Record Profit, but Shares Slump 13% as Investors Demand More

SK Hynix has spent much of this year riding the artificial intelligence boom lifting chipmakers worldwide, and Wednesday’s results extended that streak: a sixfold jump in operating profit, a record operating margin, and the strongest half-year revenue in the company’s history.

But the 13% stock slump told a different story. Expectations soared after SK Hynix briefly overtook Samsung as South Korea’s most valuable listed company, leaving even record results unable to satisfy investors worried about the AI spending cycle. 

Record Numbers That Still Fell Short of the Bar

Reuters reported that the Nvidia supplier’s quarterly operating profit soared more than sixfold to a record high, but the company said delays in shipments of some advanced products limited price gains for its mainstay DRAM chips. 

Notably, rival Samsung has recorded an eightfold Q1 profit because of the strong DRAM chip demand.

Because SK Hynix has greater exposure to high-bandwidth memory chips than its rivals, and HBM prices rose less than conventional memory during the quarter, the company captured less of the broader price rally than investors expected. 

DS Investment & Securities analyst Lee Su rim told Reuters that Samsung has greater pricing power and raised prices more aggressively than SK Hynix, helping explain why its shares fell despite strong growth. 

A Concentrated Market Feels the Shock

The stock reaction rippled beyond SK Hynix. 

Because SK Hynix and Samsung Electronics account for more than half of the KOSPI’s total weight, sharp moves in either company can sway South Korea’s benchmark more than most individual stocks elsewhere. 

That market concentration highlights why South Korea committed $576 billion to national AI and semiconductor megaprojects.

That has made SK Hynix’s quarterly earnings a key test for the broader market, with global investors looking to the KOSPI, the region’s main stock market index, for clues about AI sentiment, not just SK Hynix’s performance. 

HBM4 Ramp-Up and a Growing Cash Buffer

CNBC reported that SK Hynix began mass producing its latest HBM4 chips during the quarter and plans to ramp up output in the second half as AI infrastructure spending continues boosting demand and prices for its high-performance AI server products. 

The company’s net cash position also swelled to 88 trillion won by the end of June, with SK Hynix targeting more than 100 trillion won to better manage customer demand and stabilize operations. 

That cash buildup, along with long-term supply deals with about 10 key customers, signals SK Hynix expects strong demand beyond this quarter, even as its CEO warns of severe memory shortages in 2027, leaving investors seeking near-term proof. 

Source: SK Hynix’s record profit misses forecasts, shares slump 13%