SK Hynix: South Korean chipmaker posts record Q2 performance but shares crash 11%; here's why
SK Hynix stock opened 2.39% higher at 1.587 million Korean won. The company said the earnings were "an all-time high quarterly performance".
- Jul 29, 2026,
- Updated Jul 29, 2026 10:17 AM IST
Shares of SK Hynix Inc, a South Korean semiconductor company fell as much as 11% after the firm reported lower-than-expected operating profit for the second quarter. The stock was trading at 1.382 million Korean won, sliding 10.84% from the previous day after announcing quarterly earnings.
SK Hynix stock opened 2.39% higher at 1.587 million Korean won but crashed after a conference call that disappointed investors as SK Hynix offered neither a fresh shareholder return policy nor any earnings guidance, adding to uncertainty over the company's near-term outlook.
Shares of electronics major Samsung Electronics also opened higher but slipped 5.45% to 208,000 Korean won from the previous day.
SK Hynix shares came under pressure after the company offered limited clarity on its shareholder return plans and provided few details about its long-term customer agreements, leaving investors seeking greater visibility into its future growth strategy.
The weakness spilled over to the broader semiconductor sector, with most Asian chipmakers extending losses following Tuesday's sharp selloff.
The memory chipmaker reported second-quarter operating profit of 60.54 trillion won, rising 557% in second-quarter missing analysts' consensus estimate of 64.22 trillion won, despite benefiting from strong demand for AI-related memory chips.
The company said the earnings were "an all-time high quarterly performance".
SK Hynix’s net income surged a bigger-than-expected 1,242% on one-time investment gains in the June quarter.
Net profit came at 94 trillion won ($64 billion), a year-on-year rise of 1,242 percent, driven by the AI industry's explosive demand for its memory chips.
Management said memory chip prices rose significantly from the previous quarter and expects robust demand to continue, driven by artificial intelligence applications. The company also revealed it has signed long-term supply agreements with around 10 customers.
SK Hynix began mass shipments of its next-generation HBM4 (High Bandwidth Memory) chips during the second quarter and plans to ramp up production further in the second half of the year to meet growing AI demand.
On capital allocation, the company said it is evaluating various shareholder return options but stopped short of announcing any concrete measures, disappointing investors who had expected greater clarity on capital returns.
Shares of SK Hynix Inc, a South Korean semiconductor company fell as much as 11% after the firm reported lower-than-expected operating profit for the second quarter. The stock was trading at 1.382 million Korean won, sliding 10.84% from the previous day after announcing quarterly earnings.
SK Hynix stock opened 2.39% higher at 1.587 million Korean won but crashed after a conference call that disappointed investors as SK Hynix offered neither a fresh shareholder return policy nor any earnings guidance, adding to uncertainty over the company's near-term outlook.
Shares of electronics major Samsung Electronics also opened higher but slipped 5.45% to 208,000 Korean won from the previous day.
SK Hynix shares came under pressure after the company offered limited clarity on its shareholder return plans and provided few details about its long-term customer agreements, leaving investors seeking greater visibility into its future growth strategy.
The weakness spilled over to the broader semiconductor sector, with most Asian chipmakers extending losses following Tuesday's sharp selloff.
The memory chipmaker reported second-quarter operating profit of 60.54 trillion won, rising 557% in second-quarter missing analysts' consensus estimate of 64.22 trillion won, despite benefiting from strong demand for AI-related memory chips.
The company said the earnings were "an all-time high quarterly performance".
SK Hynix’s net income surged a bigger-than-expected 1,242% on one-time investment gains in the June quarter.
Net profit came at 94 trillion won ($64 billion), a year-on-year rise of 1,242 percent, driven by the AI industry's explosive demand for its memory chips.
Management said memory chip prices rose significantly from the previous quarter and expects robust demand to continue, driven by artificial intelligence applications. The company also revealed it has signed long-term supply agreements with around 10 customers.
SK Hynix began mass shipments of its next-generation HBM4 (High Bandwidth Memory) chips during the second quarter and plans to ramp up production further in the second half of the year to meet growing AI demand.
On capital allocation, the company said it is evaluating various shareholder return options but stopped short of announcing any concrete measures, disappointing investors who had expected greater clarity on capital returns.