SK Hynix reported second-quarter results on July 29, posting record operating profit but still falling short of market expectations. The company said operating profit surged 557% year over year to 60.5 trillion won, or about $41.62 billion, compared with 9.2 trillion won a year earlier. Even so, that figure came in below the 64 trillion won expected by the market. Revenue also missed forecasts, with quarterly sales at 79 trillion won versus expectations of 84 trillion won. According to the report, SK Hynix’s relatively higher exposure to high-end HBM chips meant it did not benefit as much from the latest sharp price cycle in conventional memory chips. The results added to concerns that the AI boom that has been driving the semiconductor sector may be losing momentum. In U.S. trading, SK Hynix had already closed down 9% on Tuesday, then fell as much as another 9% in after-hours trading following the earnings release. SanDisk and Micron Technology also dropped more than 4%, erasing the boost that had come from Seagate Technology’s earnings.
SK Hynix reported second-quarter earnings on July 29, with results that missed market expectations despite record profit growth.
The company said operating profit for the quarter jumped 557% from a year earlier to 60.5 trillion won, or about $41.62 billion, setting a new record. In the same period last year, operating profit was 9.2 trillion won. The gain was tied to strong demand for advanced memory chips as major technology companies continued to increase spending on AI data centers.
Still, the profit figure came in below the market forecast of 64 trillion won. The report said SK Hynix had a larger share of high-end high-bandwidth memory, or HBM, chips than its rivals, which left it less exposed to the latest strong pricing cycle in conventional memory chips. That added to concerns that the AI boom driving the semiconductor industry may be slowing.
Revenue also fell short of expectations. SK Hynix posted second-quarter revenue of 79 trillion won, compared with a market estimate of 84 trillion won.
After the earnings release, the stock reaction extended losses. SK Hynix had already closed down 9% in U.S. trading on Tuesday, then fell as much as another 9% in after-hours trading. SanDisk and Micron Technology also dropped more than 4%, wiping out the lift from Seagate Technology’s earnings.
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