Despite SK Hynix reporting a record 557% surge in quarterly profit to $64.64 billion, its shares plunged by a daily record of up to 19%. The company's results failed to meet lofty investor expectations driven by the AI hype cycle, fueling fears that the AI boom propelling the semiconductor industry may be decelerating and that the so-called 'AI bubble' could be about to pop.
Record profit figures
- ▪SK Hynix announced plans for higher spending, earmarking at least $31 billion in capital spending for the year
- ▪The memory-chip maker also reported a record revenue haul for the quarter
- ▪SK Hynix posted a record net profit of about $64.64 billion
- ▪SK Hynix's quarterly profit rose 557%, equivalent to a six-fold surge
Stock price plunge
- ▪After the initial plunge, the company's stock finished the day down 9% at market close
- ▪SK Hynix shares plunged by a daily record of up to 19% in Seoul on Wednesday, July 29, 2026
Missed investor expectations
- ▪The market's lofty expectations for SK Hynix were driven by the ongoing "AI hype cycle."
- ▪Despite record results, SK Hynix's revenue and operating profit failed to meet high investor expectations
AI boom concerns
- ▪The market reaction to SK Hynix's earnings raised concerns that the "AI bubble" might be about to pop
- ▪The company's financial results fueled investor fears that the AI boom in the semiconductor industry may be decelerating
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