SK Hynix Reports Record Profits Amid AI Demand and Stock Volatility

SK Hynix reported record second-quarter 2026 results on July 29, with operating profit soaring 557% year-on-year to 60.54 trillion won and revenue reaching 79.32 trillion won. Despite these record figures, the company's shares fell as much as 20.9% intraday and its U.S. ADRs dropped 16% in after-hours trading because the results missed analyst projections for both revenue and profit. Management attributed the miss to shipment delays of high-value products and limited gains in some DRAM prices.

To combat industry volatility and investor fears that the AI boom has peaked, the company secured five-year supply agreements with approximately 10 customers. It also announced plans to increase 2026 capital spending to the high-40 trillion won range to expand production at sites in Icheon, Yongin, and Cheongju, including accelerating the schedule for its M15X plant. Net profit was further bolstered by 63.3 trillion won in gains from selling its stake in Kioxia.

Company executives maintain that AI infrastructure investment will remain solid beyond next year. However, the stock's volatility drew criticism from financial commentator Jim Cramer, who characterized the market activity as being driven by gambling and margin calls rather than fundamentals. Other market pressures included the Shanghai exchange debut of Chinese competitor ChangXin Memory Technologies and investor concerns over circular financing related to Nvidia's infrastructure deals.