Key facts
- SK Hynix reported record second-quarter revenue of 79.3 trillion South Korean won ($54.6 billion), up 257% year-over-year.
- Operating profit surged 557% to 60.5 trillion won, with net profit jumping 1,242% to 93.9 trillion won.
- The company's stock fell up to 17% after the results, missing analyst consensus forecasts.
- The decline contributed to an 11% drop in the KOSPI index, with Samsung Electronics shares also falling.
- Bitcoin and major cryptocurrencies rose despite the sell-off in Asian equity markets.
SK Hynix shares plunged as much as 17% despite the company announcing record second-quarter earnings. The South Korean memory-chip maker reported revenue of 79.3 trillion South Korean won ($54.6 billion), a 257% year-over-year increase. Operating profit surged 557% to 60.5 trillion won, and net profit jumped 1,242% to 93.9 trillion won, marking quarterly records. However, these strong results fell short of analyst consensus forecasts, leading to the sell-off. The decline in SK Hynix, a major component of the KOSPI index, contributed to a 7% drop in the index, with rival Samsung Electronics shares also falling. The weakness extended to other chip stocks across Asia. Analysts noted that strong results are no longer sufficient in the current AI market, with investors seeking additional catalysts like long-term agreements and shareholder returns. Concerns about slowing AI spending and high leverage in AI-linked equities were cited as reasons for the sell-off, leading to deleveraging and unwinding of leveraged positions. Bitcoin and major cryptocurrencies, however, climbed, suggesting a potential weakening of their correlation with AI-linked equities.