SK Hynix ended the second quarter of 2026 with record results, but failed to meet the market’s very high expectations. Revenue rose by 257 per cent year-on-year to 79.3 trillion won, whilst operating profit increased by 557 per cent to 60.5 trillion won. However, analysts had expected a profit of around 64 trillion won. This disappointment triggered a sharp reaction. The memory manufacturer’s shares fell by almost 10 per cent on Wednesday, whilst the KOSPI index lost 6 per cent.
Investors’ reaction highlights a shift in attitude towards the AI sector. Rapid growth in results alone is no longer enough. The market is increasingly scrutinising the pace of new product roll-outs, the profitability of investments and the ability of the largest tech firms to finance costly infrastructure.
SK Hynix maintains that demand remains strong. The manufacturer has begun mass deliveries of HBM4 memory and has signed long-term contracts with around ten customers. Such contracts increase the predictability of sales but may limit the ability to raise prices quickly.
The company also has significant scope for investment. At the end of the quarter, it held 88 trillion won in cash and cash equivalents, with a net cash position of 69.4 trillion won. At the same time, expectations regarding the use of capital are rising. “SK needs to devise a concrete shareholder return policy to turn investor sentiment around,” said Greg Roh of Hyundai Motor Securities.
Competitive pressure is mounting from Samsung, which estimated its quarterly operating profit at 89.4 trillion won.
The most significant consequence could be greater market caution regarding the entire AI supply chain. If spending on data centres slows, memory manufacturers could quickly face price pressure and the risk of oversupply. If demand holds up, the current sell-off may turn out to be primarily a correction of overly high expectations.
