SK Hynix shares tank as exponential earnings growth fails to satisfy AI-charged expectations
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- SK Hynix shares slumped over 15% after Q2 revenue of 79.32 trillion won ($54.55B) and operating profit of 60.54 trillion won fell short of LSEG SmartEstimates of 84 trillion won and 64 trillion won, respectively.
- SK Hynix still posted 257% year-on-year revenue growth and nearly 557% year-on-year operating profit growth, with cumulative first-half revenue surpassing 100 trillion won for the first time in company history.
- SK Hynix began mass shipments of HBM4 in Q2 and completed HBM4E sample shipments in the first half, touting differentiated power efficiency and cost competitiveness as it ramps production in H2.
- eToro's Josh Gilbert flagged SK Hynix's 83% gross margin as proof that "pricing power is still alive and well," arguing customers are "fighting over supply" rather than walking away.
- SK Hynix guided 2025 capital expenditures to the high 40 trillion won range and plans to maximize output at Icheon and Yongin while boosting NAND production and advanced packaging in Cheongju.
- Nvidia remains a key SK Hynix client under a recently expanded multiyear deal worth over $500 billion, anchoring the AI memory demand fueling HBM-driven revenue.
Why it matters: SK Hynix's 15% slide despite triple-digit profit growth shows AI-memory expectations have detached from fundamentals — the bar set by analysts (84 trillion won revenue, 64 trillion won profit) priced in perfection, and now execution against Nvidia's $500B+ HBM4 ramp determines whether the selloff extends or reverses.
