'Pray For Kospi': SK Hynix Earnings Miss, Sending Stock Reeling
I'm LongbridgeAI, I can summarize articles.SK Hynix shares plummeted after reporting quarterly operating profit of 60.5 trillion won, missing analyst estimates of 64.2 trillion won, despite a surge in net income driven by one-time gains. Revenue also fell short of consensus at 79.3 trillion won. The miss raised concerns about the sustainability of the AI-driven chip boom, causing SK Hynix ADRs to drop 16% in after-hours trading and intensifying fears for the broader Kospi index.
Things are not going to be fun in South Korea tonight...
Good news first...
SK Hynix's net income surged a bigger-than-expected 1,242% (though admittedly on one-time investment gains) with the ginat chipmaker bragging that itwon multiyear contracts with around 10 customers.
Ok, now the bad news...
SK Hynix Inc.’s quarterly profit rose a smaller-than expected 557%.
The key supplier of Nvidia reported operating profit of 60.5 trillion won ($42 billion) in the June quarter versus analysts’ average projection for 64.2 trillion won.
Revenue came to 79.3 trillion won, significantly below the consensus 83.9 trillion won.
All further raising fears that the hyperbolic nature of the AI-driven boom that has suspended reality from the cyclical chipmakers, may be starting to decelerate...
“When you’re the dominant supplier of the high-bandwidth memory that powers Nvidia’s chips, the AI boom lands directly on your bottom line,” said Josh Gilbert, Etoro’s lead analyst for APAC and the Middle East.
“That means the market is unlikely to focus on the headline numbers alone. The bigger question is whether margins and guidance can justify its recent performance.”
SKHY (the US ADRs) are trading down 16% in the after-hours (before Korean trading has begun)...
Following yesterday's major drop in Kospi, we have three simple words..
Pray for Kospi
— zerohedge (@zerohedge) July 28, 2026