사진설명 사진 확대

Why Did SK hynix Fall Sharply Despite Record Results?

Just as Japan launched a surprise attack on Pearl Harbor, China struck both fronts of the South Korea-U.S. AI semiconductor camp. On one side, it first targeted the software front with DeepSeek and then Kimi K3. This time, it hit the hardware side through the IPO of ChangXin Memory Technologies (CXMT). So far, only Chinese investors can buy the stock.

Investors were caught off guard. Those who failed to take profits near the peak in Samjeonnyx, a nickname for Samsung Electronics and SK hynix, and Micron were left reeling. But SK hynix’s earnings deserve close attention. Its net profit, after expenses, surged 1,242% from a year earlier. Its profit margin is 4.4 times higher than CXMT’s. It also has a new weapon that China does not: High Bandwidth Memory. Just as the U.S. and Japanese forces regrouped and won after the Pearl Harbor attack, investors in the South Korea-U.S. semiconductor camp are now hoping for a rebound in share prices.

SK hynix earned 98 trillion won in the first half of 2026, but its stock has been swinging sharply amid calls for Big Tech to rein in AI investment and CXMT's rapid rise in China. [Yonhap News Agency] 사진 확대 SK hynix earned 98 trillion won in the first half of 2026, but its stock has been swinging sharply amid calls for Big Tech to rein in AI investment and CXMT’s rapid rise in China. [Yonhap News Agency]

Why SK hynix Fell Short of Expectations Despite Record Results

[Designer Kim Hyeong-gyu] 사진 확대 [Designer Kim Hyeong-gyu]

SK hynix announced on the 29th that its operating profit in the second quarter, from April to June, jumped 557.2% from a year earlier to 60.5426 trillion won. Revenue rose 256.8% over the same period to 79.3187 trillion won. Net profit surged 1,242.5% to 93.0926 trillion won.Its operating margin reached 76.3%It reached that level.

This means that not only conventional commodity chips, but also expensive semiconductors such as high-performance DRAM and High Bandwidth Memory for AI servers sold well. However,its operating profit came in 4.7% below the market forecast of 63.5526 trillion won, marking an earnings miss. Cumulative operating profit for the first half reached 98.1528 trillion won, falling short of the 100 trillion won market had expected.

SK hynix shares also took a roller-coaster ride on the 29th. They were strong early in the session, but selling pressure later surged. Investors’ disappointment can be summed up in three main reasons: weaker-than-expected earnings, CXMT’s advance, and concerns over reduced Big Tech investment.

CXMT’s DRAM market share rose from 3% in the first quarter of 2025 to 8% in the first quarter of 2026, according to Counterpoint Research, making it the most notable gainer. It also secured about 1.44 trillion won in funding through a listing on the SSE STAR Market. CXMT is focused solely on DRAM. In addition, unlike South Korean and U.S. semiconductor companies that adjust production, CXMT is expected to maintain China’s distinctive no-cutback stance, meaning it will keep expanding output without reducing production. It is reportedly aiming to expand its DRAM share in the short term and enter the High Bandwidth Memory market in the medium to long term.

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사진설명 사진 확대

This article has been translated by GripLabs Mingo AI.