SK Hynix Reports Record Profit, But Stock Plummets Amid Market Fears

SK Hynix announced record-breaking operating profit and revenue for the second quarter of 2026, yet its stock price plummeted by nearly 10%, casting a pall over the broader stock market. The company's financial performance, while historically strong, failed to meet market expectations and did little to alleviate investor anxieties surrounding the semiconductor industry.

The chipmaker reported a provisional operating profit of 60.5426 trillion won for the April-June period, a staggering 557.2% increase year-on-year and a 61.0% rise from the previous quarter. Revenue also surged to 79.3187 trillion won, up 256.8% from the same period last year and 50.9% from the first quarter. This performance pushed SK Hynix's cumulative first-half revenue past 100 trillion won for the first time.

However, the market reacted negatively, with SK Hynix shares closing at 1.401 million won, down 9.61% from the previous trading day. This downturn was fueled by the "earnings miss", the results falling short of the 82.6 trillion won revenue and 63.2 trillion won operating profit anticipated by analysts. Investor sentiment turned bearish, with concerns about a potential "semiconductor peak-out" and China's intensifying competition.

The negative impact extended to other major tech stocks, with Samsung Electronics' stock falling 5.23%. The KOSPI index dropped significantly, triggering a circuit breaker for the second consecutive day, a first in the market's history. SK Hynix and Samsung Electronics shares have lost over 20% and 17% respectively in just two days. In response, SK Hynix attempted to counter the 'peak-out' fears during an earnings call, highlighting ongoing long-term supply agreement negotiations with over ten clients to ensure medium-to-long-term supply stability.

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We have finalized long-term supply agreement (LTA) negotiations with more than 10 clients so far, securing medium-to-long-term supply stability.