SK Hynix’s Record Quarter Met With a Whipsaw: Profits Soar, Yet the Stock Can’t Catch a Break
Published on 07/30/2026 at 09:51 | Redaktion boerse-global.de
SK Hynix just posted the strongest financial results in its corporate history, and the market’s reaction was anything but straightforward. The South Korean memory-chip giant reported second-quarter 2026 revenue of 79.3187 trillion won and an operating profit of 60.5426 trillion won — the latter representing a staggering 557% year-over-year surge and an operating margin of 76%. Net profit hit 93.9226 trillion won, up roughly 1,243% from the same period last year. For the first time ever, cumulative first-half revenue crossed the 100 trillion won threshold.
Yet investors initially sent the stock into a tailspin. On Wednesday, shares closed at 1,401,000 won, and the selling accelerated Thursday, with the stock dropping another 5.64% to 1,322,000 won. The Relative Strength Index slid to 31.8, a level that typically signals an oversold condition — and one that several analysts now interpret as a buying opportunity.
The Expectation Trap
The sell-off wasn’t about weak numbers. It was about unmet expectations. According to the Yonhap Infomax consensus, analysts had forecast operating profit of 63.5526 trillion won and revenue near 84 trillion won. SK Hynix missed both targets by roughly 4.7% and 5.6%, respectively. Even a pre-tax gain of 122.7083 trillion won — boosted by the sale of its Kioxia stake — couldn’t shield the stock from disappointment.
What rattled investors most was the lack of detail during the earnings call. Management offered scant commentary on HBM pricing, long-term supply contracts, or forward guidance — a vacuum that the market filled with uncertainty. The sell-off unfolded against a backdrop of broader turmoil at the Korea Exchange’s KOSPI, where circuit breakers were triggered and roughly three-quarters of listed stocks traded below book value. Leveraged positions were liquidated en masse, with retail losses running into the tens of trillions of won.
Should investors sell immediately? Or is it worth buying SK Hynix?
The stock now sits nearly 56% below its 52-week high of 2,987,000 won — a disconnect that stands in sharp contrast to the operational momentum the company is reporting.
Analysts Cut Targets, Stay Bullish
Despite slashing price targets, most brokerages are holding firm on their buy ratings. Mirae Asset Securities cut its target by a third, from 4.2 million won to 2.8 million won, but maintained its buy recommendation. Analyst Younggun Kim argued that Chinese competition remains contained and that DRAM spot prices have risen for over 50 consecutive trading days. He estimates cumulative free cash flow from 2025 through 2027 will reach roughly 440 trillion won, making the current share price decline overdone.
Daishin Securities trimmed its target from 3.9 million won to 3.2 million won, also keeping a buy rating. Analyst Ryu Hyung-geun pointed to intact growth potential in the AI cycle, forecasting global DRAM production growth in the low-to-mid 20% range for 2027 and server DRAM demand rising more than 50% by then. With net cash reserves already exceeding 100 trillion won, he flagged the possibility of share buybacks or special dividends.
Other houses — including Kiwoom, SK Securities, Shinhan, NH, and Samsung Securities — set new targets ranging from 2.2 million won to 4 million won. Korea Investment stood out as an outlier, raising its target to 4.7 million won.
A $750 Billion Nvidia Pact and HBM4 Momentum
Operationally, SK Hynix is delivering the kind of news that underpins the optimists’ case. Mass production of the HBM4 memory chip began in the second quarter, and initial samples of the enhanced HBM4E have already been shipped. The company has signed long-term supply agreements with more than ten major technology clients, spanning roughly five years and including advance payments and firm purchase commitments.
On July 25, a five-year supply agreement with Nvidia and other partners was announced, valued at a combined $750 billion. A separate report from the secondary article references a broader SK Group-Nvidia cooperation pact exceeding $500 billion, covering everything from AI factory construction to next-generation memory chip deliveries. Taken together, these deals represent a multi-year demand guarantee that management is betting will sustain the company’s growth trajectory.
President Song Hyun-jong emphasized that capacity expansion is being calibrated strictly to customer demand, limiting the risk of oversupply. For 2026, capital expenditure guidance was set near the top of the 40 to 50 trillion won range. For 2027, planned investments exceed 40 trillion won, earmarked for the accelerated M15X fab in Cheongju and a new clean room in Yongin that is slated to begin operations in early 2027.
SK Hynix at a turning point? This analysis reveals what investors need to know now.
Looking Ahead: Guidance That Defies the Skeptics
For the third quarter, SK Hynix expects revenue well above 100 trillion won and operating profit of roughly 80 trillion won — numbers that suggest the company’s growth engine remains intact despite the stock’s violent correction.
The whipsaw in the share price — from a 9% post-earnings plunge to a subsequent recovery that saw the stock close up more than 2% in after-hours trading — reflects a market struggling to reconcile record profits with sky-high expectations. The broader regional rally that followed, with the KOSPI gaining 2.76% and Japan’s Nikkei 225 climbing above 63,000 points, suggests that the selling may have been overdone. Samsung Electronics, the country’s other memory-chip heavyweight, also rallied in sympathy.
Still, the stock remains roughly 52% below its June 25 peak, and the loss in market capitalization over the past month alone — nearly $600 billion — has turned one of the hottest AI trades into one of the most volatile. The 200-day moving average sits 21.75% below the current price, a reminder of how dramatically positioning has shifted in just a few weeks.
Management is now fighting the narrative that AI demand has peaked. With record profits, a $750 billion Nvidia partnership, and capex at the high end of guidance, the company is making its case. Whether the market is ready to buy it — at these prices — remains the open question.
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SK Hynix Stock: New Analysis - 30 July
Fresh SK Hynix information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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