SK Hynix’s record profit misses forecasts, shares slump 10% despite robust AI chip demand - WTVB

SK Hynix reported a record quarterly operating profit, yet fell short of investor expectations amid concerns over potential cooling in AI infrastructure spending by tech firms. Despite strong demand f... Read original →

Despite posting a record quarterly profit, SK Hynix's stock dropped 10% as investor sentiment soured amid concerns over potential cooling in AI infrastructure spending. Technologically, while demand for DRAM and HBM remains robust due to AI growth, delayed shipments of advanced products limited pricing power. Upstream supply chain constraints, particularly in EUV and 3nm processes, hinder capacity expansion. Downstream clients like Microsoft and Alphabet are adjusting procurement strategies, increasing industry volatility. Geopolitical tensions, especially in the U.S.-China tech rivalry, are heightening supply chain risks and pushing companies toward localized production. Competitors such as Samsung and Kioxia are ramping up output to gain market share. Over the next 12 to 24 months, the semiconductor cycle is expected to intensify, with firms relying more on long-term contracts and shifting focus toward high-margin products, signaling a structural shift in the memory market.