On July 29, 2026, SK hynix shocked the market with a nearly 13% plunge in its stock price, even after announcing its strongest quarterly earnings ever.
The company reported Q2 revenue of ₩79.3 trillion and an operating profit of ₩60.5 trillion, both all-time highs. Net profit also reached a record ₩93.9 trillion. Despite these impressive figures, investors were left disappointed because the results fell short of the consensus estimates, which had anticipated around ₩84 trillion in revenue and ₩64 trillion in operating profit.
Adding to the stock's decline was a broader selloff in South Korea’s KOSPI index, which dropped roughly 12.6% on the same day, dragging chip stocks lower. Earlier in July, SK hynix had completed a sizable ADR offering worth about ₩40 trillion (approximately $26.5 billion), increasing share liquidity and shifting ownership dynamics right before earnings were released.
The market had baked in high hopes fueled by the booming AI memory demand story. Yet, even with record numbers, missing those lofty expectations triggered a classic “sell the news” reaction. Investors are now keeping a close eye on HBM pricing, DRAM cycle trends, and management’s guidance on capital expenditure and supply outlook to gauge what comes next.
This episode highlights how markets don’t just trade earnings but the gap between outcomes and sky-high expectations. SK hynix’s results showcased strong fundamentals, yet the slight miss on revenue and profit estimates sent the stock tumbling. The situation shows that solid past performance doesn’t always protect against immediate market setbacks when sentiment runs ahead.
This material is for informational purposes only and does not constitute financial advice.
