--- title: "SK Hynix staged a \"V-shaped reversal\" after hours: Q2 operating profit surged 557% but still fell short of expectations. Signed a $500 billion deal with NVIDIA to accelerate HBM4 mass production and defend its AI dominance" type: "News" locale: "en" url: "https://longbridge.com/en/news/294131954.md" description: "SK Hynix announced its Q2 2026 results, with revenue of 79.32 trillion won and operating profit of 60.54 trillion won, both setting records but falling short of expectations. Net profit surged 1242% year-on-year to 93.92 trillion won due to one-time gains. Following the earnings report, the stock price initially fell and then rose. The company announced annual capital expenditures of 40 trillion won, intensifying competition with Samsung and concerns over supply surplus, leading to a significant recent evaporation of market value" datetime: "2026-07-29T01:30:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294131954.md) - [en](https://longbridge.com/en/news/294131954.md) - [zh-HK](https://longbridge.com/zh-HK/news/294131954.md) --- # SK Hynix staged a "V-shaped reversal" after hours: Q2 operating profit surged 557% but still fell short of expectations. Signed a $500 billion deal with NVIDIA to accelerate HBM4 mass production and defend its AI dominance According to Zhitong Finance APP, SK Hynix (SKHY.US) announced its Q2 2026 performance on Wednesday morning Beijing time. The financial report shows that the company's Q2 revenue reached a record 79.32 trillion won (USD 54.55 billion), a quarter-on-quarter increase of 51% and a year-on-year increase of 257%, but below the market expectation of 84 trillion won; operating profit also reached a record 60.54 trillion won, a quarter-on-quarter increase of 61% and a year-on-year surge of 557%, still falling short of the market expectation of 64 trillion won. Thanks to a one-time investment gain, SK Hynix's Q2 net profit skyrocketed 1242% year-on-year, reaching 93.92 trillion won. Notably, SK Hynix's operating profit margin in the second quarter reached 76%, up from 72% in the first quarter. ![7b0510f1a9cd87b0cdd00a68915f6eac.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260729/1785285911622331.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) In its financial report, SK Hynix stated that strong demand for AI and the hot sales of high-value-added products drove quarterly performance to a historic high; cumulative revenue in the first half of the year surpassed 100 trillion won for the first time. After the financial report was released, SK Hynix's U.S. stock initially fell 5% in after-hours trading, but then recovered, rising 1.7%. **SK Hynix's annual spending targets 40 trillion won as storage giants intensify competition, raising concerns about oversupply** SK Hynix disclosed on Wednesday that its capital expenditure this year is expected to reach the upper range of 40 trillion won (approximately USD 27.5 billion), which will intensify its competition with Samsung Electronics for the AI investment boom. SK Hynix has surpassed Samsung to take the lead in the hot AI high-bandwidth memory chip market. However, since June, its market value has evaporated by more than USD 500 billion, as investors began to question whether the industry's high spending could support such high valuations. The rising debt levels of technology companies have also raised concerns among investors. The increasing leverage of companies like SK Hynix has exacerbated volatility in the South Korean stock market, with the company's market value evaporating by about 45% in roughly a month. Josh Gilbert, Chief Analyst for Asia-Pacific and the Middle East at eToro, stated: "As a major supplier of high-bandwidth memory chips to NVIDIA, the boom in AI will directly impact SK Hynix's profits. This means the market is unlikely to focus solely on surface data. The more important question is whether profit margins and performance guidance can support its recent stock price performance." Investors are worried that soaring chip costs may trigger a broader economic slowdown: the prices of electronic products will rise, forcing manufacturers of computers, smartphones, and other terminals to cut production. Several brokerages, including Mirae Asset Securities, have lowered their earnings expectations for SK Hynix's second quarter in recent weeks, citing a slowdown in the rise of average chip prices. Memory chip manufacturers counter that, in the long run, chip demand will still exceed supply. Manufacturers state that downstream customers, such as cloud service providers, continue to increase their orders for memory chips, simultaneously driving up shipment volumes and profit margins. SK Hynix CEO Guo Lu stated earlier this month that the severe memory chip shortage currently troubling computer, automotive, and equipment manufacturers may persist until after 2030 SK Hynix, Samsung, and Micron Technology jointly dominate the global memory supply. In recent years, these three companies have continuously shifted their production focus towards high-bandwidth memory used for NVIDIA AI accelerators, leading to a tightening of traditional memory supplies. SK Hynix announced on Wednesday that it has signed multi-year contracts with about 10 customers. Last week, SK Group signed a cooperation agreement with NVIDIA, with both parties stating that the total value of the transactions covered by the agreement could exceed $500 billion. NVIDIA CEO Jensen Huang stated that this figure includes NVIDIA's spending on memory chips and supercomputers. He said, "The total amount of future cooperative transactions between the two parties will reach $500 billion." SK Hynix is one of the key suppliers of HBM4, the most advanced high-bandwidth memory currently available, and a critical component of NVIDIA's new Vera Rubin AI chip. Last month, SK Hynix announced that it had delivered next-generation HBM4E samples to major customers, while the previous month, Samsung announced its intention to seize the initiative in the competitive market. SK Hynix stated on Wednesday that it began mass shipping HBM4 in the second quarter and will gradually increase production in the second half of the year ### Related Stocks - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [07347.HK](https://longbridge.com/en/quote/07347.HK.md) - [09347.HK](https://longbridge.com/en/quote/09347.HK.md) - [07747.HK](https://longbridge.com/en/quote/07747.HK.md) - [09747.HK](https://longbridge.com/en/quote/09747.HK.md) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Why SK Hynix Shares Tumbled 11% After Q2 Profit Surged 557% to Record High](https://longbridge.com/en/news/294143832.md) - [SK Hynix is the latest chip giant to discover that a 557% profit boost isn't good enough](https://longbridge.com/en/news/294150674.md) - [SK Hynix record profit, AI demand strong despite earnings miss](https://longbridge.com/en/news/294184403.md) - [Is SK Hynix Stock a Buy After Its Latest Earnings Report?](https://longbridge.com/en/news/294240451.md) - [Some Investors Believe SK Hynix Could Be the Next Big AI Stock. 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