SK Hynix shares nosedived on Wednesday, closing 9.6% lower, as exponential second-quarter earnings and revenue growth failed to satisfy analysts' supercharged expectations for the AI darling.
**Q2 Results vs. LSEG SmartEstimates:** - Revenue: 79.32 trillion won ($54.55B) vs. 84 trillion won expected - Operating profit: 60.54 trillion won vs. 64 trillion won expected
Despite missing estimates, the numbers were staggering: revenue jumped 257% year-on-year, while operating profit soared nearly 557%. Compared with the previous quarter, revenue increased 51% and operating profit gained 61%.
For the first time in its history, the company's cumulative first-half revenue exceeded 100 trillion won, underscoring robust AI demand. The company said high-performance products for AI servers led price increases that set fresh records.
Josh Gilbert, lead analyst at eToro, noted that SK Hynix's gross margin of 83% indicates pricing power is still intact. "That doesn't exist in a market where demand is drying up; it exists in one where customers are fighting over supply."
The company has begun mass shipments of HBM4 and completed sample shipments of HBM4E, while its 321-layer NAND products already capture the largest share of production. SK Hynix counts Nvidia among its key clients, with a partnership recently expanded through a multiyear deal worth over $500 billion.
