TLDR
- SK Hynix reported Q2 operating profit of 60.5 trillion won ($42B), up 557% year-over-year but below the 64.2 trillion won analyst estimate
- Revenue hit a record 79.3 trillion won ($54.5B), also missing the 83.9 trillion won forecast
- SKHY stock dropped 8.98% on July 28, its first earnings report since listing ADRs on Nasdaq earlier this month
- The company posted a record 76% operating margin and net profit surged 1,242% on one-time investment gains
- SK Hynix secured long-term supply deals with around 10 customers and has begun mass shipments of HBM4
SK Hynix posted record revenue and a 557% jump in operating profit for Q2, and the stock still fell nearly 9%.
SKHY closed down 8.98% on July 28 at $130.17, with Seoul-listed shares dropping around 2.52% in their own session. The ADR listing on Nasdaq happened earlier this month, making this the company’s first earnings report as a U.S.-listed stock.
Operating profit came in at 60.54 trillion won ($41.62 billion), missing the 64 trillion won analyst estimate compiled by LSEG SmartEstimate. Revenue rose 257% to a record 79.32 trillion won ($54.53 billion), but that also fell short of the 83.9 trillion won forecast.
Net profit surged 1,242% to 93.92 trillion won ($64.56 billion), boosted by non-operating gains. The company also posted a record 76% operating margin.
The miss spooked investors who had priced in a stronger result. SK Hynix has lost more than $500 billion in market value since June, with the stock shedding roughly 45% of its value in about a month as doubts grew about AI spending sustainability.
CNBC’s Jim Cramer pushed back on the reaction, saying the results “may not be that bad” and that bears were “really trying to take apart a good story with Hynix.”
HBM4 Shipments and Long-Term Deals Offer Some Reassurance
On the forward-looking side, SK Hynix gave investors a few reasons to stay patient. The company has begun mass shipments of HBM4, completed customer sampling for HBM4E, and is expanding production through its M15X and Yongin facilities.
It also locked in long-term supply agreements with around 10 customers and is expanding multi-year contract talks to secure future demand.
For Q3, SK Hynix expects DRAM shipments to rise about 10% and NAND shipments to increase around 3%. Full-year forecasts call for DRAM demand growth of about 25% and NAND demand growth of about 18%.
Capital spending for 2026 is now expected to hit the high end of the 40 trillion won guidance range, driven by continued investment in AI memory capacity and advanced packaging.
The Nvidia Partnership Looms Large
SK Hynix is the dominant supplier of high-bandwidth memory for Nvidia’s AI accelerators. Last week, SK Group signed a partnership agreement with Nvidia covering deals the two companies said could be worth more than $500 billion.
Nvidia CEO Jensen Huang told Bloomberg that the figure includes memory chip purchases and supercomputer sales. “Between us, we’re going to do half a trillion dollars’ worth of business,” he said.
Despite that headline deal, investors are watching average selling prices closely. Brokerages including Mirae Asset Securities have trimmed their Q2 profit estimates in recent weeks, citing moderated ASP growth.
SK Hynix CEO Kwak Noh-Jung said earlier this month that memory chip shortages affecting computers, cars, and devices are likely to persist beyond 2030.
Q3 DRAM shipments are expected to grow around 10%, with full-year DRAM demand forecast at approximately 25% growth.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
