SK Hynix shares fell 9.6% on Wednesday as second-quarter earnings failed to meet high analyst expectations despite massive revenue growth.
SK Hynix shares dropped 9.6% on Wednesday after the company reported second-quarter results that failed to meet high analyst expectations. Although revenue jumped 257% year-on-year and operating profit soared nearly 557% year-on-year, the stock fell because analysts had set supercharged expectations for the artificial-intelligence darling. SK Hynix reported that sustained demand growth from expanding AI infrastructure investments led to record price increases for high-performance products. For the first time in company history, cumulative revenue for the first half of the year exceeded 100 trillion won. The company plans to prioritize investments in growth and secure a sound financial structure while maximizing production at manufacturing hubs in Icheon and Yongin. Josh Gilbert, lead analyst for APAC at eToro, noted that the company's 83% gross margin indicates strong pricing power in a market where customers are competing for supply. SK Hynix continues to supply key clients like Nvidia, maintaining a multiyear deal worth over $500 billion.