SK Hynix Stock Plunges Nearly 10% as Record Earnings Fall Short of Estimates

Shares of SK Hynix Inc. (KRX: 000660) tumbled 9.6% on Wednesday after the memory chipmaker reported record second-quarter earnings that nevertheless fell short of elevated market expectations. The stock drop occurred within a broader sell-off that saw South Korea's KOSPI index dive as much as 12.6%, triggering a circuit breaker for a second consecutive session.

Record Quarter Fails to Impress

For the second quarter of 2026, SK Hynix announced all-time high financial results, driven by strong demand from the artificial intelligence sector. However, the figures did not meet the consensus estimates from analysts, leading to a negative investor reaction.

• Revenue: ₩79.32 trillion, a 257% year-on-year increase, but below the anticipated ₩84 trillion.
• Operating Profit: ₩60.54 trillion, a 557% year-on-year surge, but missing the consensus of ₩64 trillion.

Analysts noted that despite the historic performance, the market had set an even higher bar for the chip giant, causing investors to focus on the miss rather than the substantial growth.

Market Headwinds and Analyst Concerns

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The negative sentiment was compounded by a price target cut from Mirae Asset Securities, which lowered its target for SK Hynix to ₩2.8 million from ₩4.2 million. The firm cited concerns over potential declines in NAND flash memory prices and volatility from leveraged trading, though it maintained a "buy" rating, viewing the sell-off as excessive.

A significant factor amplifying the downturn was forced deleveraging across the market. According to the report, heavily leveraged retail investors faced margin calls, which intensified selling pressure on SK Hynix and other technology stocks.

Intensifying Competition

The earnings disappointment landed amid a backdrop of growing competitive threats. Samsung Electronics recently unveiled its next-generation HBM4 memory, posing a direct challenge to SK Hynix's leadership in the critical high-bandwidth memory (HBM) market.

Furthermore, investors are weighing concerns about the sustainability of AI infrastructure spending and increased competition from Chinese rivals like CXMT, which recently fueled market jitters with its IPO plans. The combination of a headline earnings miss, a market-wide sell-off, and new competitive pressures overshadowed the company's otherwise stellar quarterly performance.