--- title: "SK Hynix Stock Slumps Despite Record Q2 Results; Investors Grow Wary of the AI Trade" type: "News" locale: "en" url: "https://longbridge.com/en/news/294162775.md" description: "SK Hynix reported record Q2 revenue and profit driven by AI chip demand, yet its stock fell over 18% as results missed Wall Street expectations. Investors are growing cautious about sustained AI spending and disappointed by the lack of new shareholder return announcements. Despite the sell-off, management remains confident in strong HBM demand and plans to expand production capacity." datetime: "2026-07-29T06:15:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294162775.md) - [en](https://longbridge.com/en/news/294162775.md) - [zh-HK](https://longbridge.com/zh-HK/news/294162775.md) generator: "portal-rs" --- # SK Hynix Stock Slumps Despite Record Q2 Results; Investors Grow Wary of the AI Trade SK Hynix (SKHY) reported record second-quarter results, fueled by booming demand for AI memory chips. However, its stock slumped more than 18% on the Korean exchange (KOSPI) as the results fell short of Wall Street's lofty expectations. ### Claim 55% Off TipRanks Explore NVDS for 2X short leverage on NVDA South Korea's SK Hynix is the world's largest supplier of high-bandwidth memory (HBM) chips, alongside Samsung Electronics (SSNLF) and Micron (MU). HBM chips are a key component in Nvidia's (NVDA) AI accelerators and remain in high demand as hyperscalers continue building AI data centers. Last week, SK Group, the parent of SK Hynix, partnered with Nvidia in a $500 billion AI infrastructure deal aimed at supporting rising demand for AI computing worldwide. ## **Why Are SK Hynix Shares Falling?** The chipmaker reported revenue of 79.32 trillion won ($54.55 billion), up 257% year-over-year, while operating profit surged 557% to 60.54 trillion won, both company records. However, revenue missed analysts' expectations of about 84 trillion won, and operating profit also came in below the consensus estimate of 64 trillion won. Despite posting record earnings, investors had expected even stronger results after months of optimism surrounding AI-driven demand. Investors are also growing more cautious about AI-related semiconductor stocks as they question whether the current pace of AI infrastructure spending can be sustained. The broader semiconductor sector has been under pressure in recent weeks, adding to the selling in SK Hynix shares. Another concern is that SK Hynix's heavy focus on HBM chips meant it benefited less from rising prices in conventional DRAM and NAND memory. Additionally, the company has locked in much of its HBM supply under long-term contracts, which provide stable demand but reduce its ability to fully capitalize on future price increases. Investors were also looking for stronger shareholder returns. While SK Hynix highlighted its growing cash position, management did not announce a new share buyback or provide a clearer capital allocation policy, which disappointed some investors. ## **AI Demand Remains Strong** Despite the market's negative reaction, management remained confident in the outlook. The company said demand for AI memory continues to grow and highlighted long-term supply agreements with around 10 major customers. SK Hynix expects HBM demand to remain strong as hyperscalers continue expanding AI infrastructure. Moreover, SK Hynix expects capital spending to reach the upper end of its 40 trillion won target this year, up from about 30 trillion won in 2025, as the company expands production capacity. The company said it has begun shipping its next-generation HBM4 products and plans to expand production while maintaining disciplined capital spending. Analysts generally believe AI-driven demand remains intact, even as investors become more selective following the sector's sharp rally. ## **Is SKHY Stock a Buy?** On TipRanks, SKHY stock has a Moderate Buy rating with a $330 price target, implying 153.5% upside from the current price. ### Related Stocks - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [EWY.US](https://longbridge.com/en/quote/EWY.US.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.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) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) ## Related News & Research - [SK hynix (KOSE:A000660) Reviews Chongqing Plant Sale, Is The AI Memory Upside Enough?](https://longbridge.com/en/news/296411870.md) - [Is Samsung’s $72B payout a vote of confidence in AI?](https://longbridge.com/en/news/296469504.md) - [Samsung Elec to convene board meeting Friday to discuss shareholder return plan, says source](https://longbridge.com/en/news/296559540.md) - [SK Hynix Stock Forecast: Can HBM4 Demand Drive a Breakout Toward $194?](https://longbridge.com/en/news/296024825.md) - [SK Hynix Shares Surge Amid Hopes for Higher Shareholder Returns](https://longbridge.com/en/news/296437712.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**