South Korean semiconductor giant SK Hynix has reported record second-quarter earnings, driven by strong demand for artificial intelligence (AI) memory chips and rising memory prices, although its shares declined after results fell short of analysts’ expectations.
The world’s second-largest memory chipmaker posted an operating profit of approximately $41.6 billion in the second quarter, representing more than a sixfold increase from the same period a year earlier. However, the figure missed the $44 billion forecast by analysts tracked by LSEG SmartEstimate.
Revenue increased by 257 per cent to about $54.5 billion, while net profit surged more than twelvefold to approximately $64.6 billion, supported by higher prices for dynamic random access memory (DRAM) and NAND flash products.
Despite the record performance, investors reacted cautiously, with shares of SK Hynix listed in Seoul falling nearly 9 per cent by 02:12 GMT to their lowest level since 4 May. The decline reflected concerns over whether the rapid expansion of AI-related semiconductor spending can continue, alongside a broader sell-off in global AI and chip stocks.
SK Hynix attributed its strong results to growing adoption of AI technologies across industries, which has increased demand for high-bandwidth memory (HBM), server DRAM and enterprise solid-state drives (SSDs).
The company said it expects AI infrastructure investment by major cloud service providers to remain a key driver of growth, adding that demand for advanced memory products is expected to strengthen as supply constraints gradually ease.
For 2026, SK Hynix projected DRAM bit demand growth in the mid-20 per cent range year-on-year, while NAND demand is expected to expand by the high-teens percentage range.
The company also forecast that DRAM shipments in the third quarter would rise by about 10 per cent compared with the previous quarter, while NAND shipments are expected to increase by a low single-digit percentage.
SK Hynix said it began shipping its next-generation HBM4 products in the second quarter and plans to increase production significantly in the second half of the year. The company added that it has started supplying HBM4E samples to a major customer.
The memory chipmaker has emerged as one of the biggest beneficiaries of the AI boom, with demand for HBM chips used in AI accelerators exceeding available supply. It remains a key supplier to US chipmaker Nvidia.
Last week, SK Hynix expanded its strategic partnership with Nvidia through a long-term agreement to jointly develop next-generation AI memory technologies as part of a wider AI infrastructure initiative valued at more than $500 billion.
The latest earnings come as investors continue to assess the sustainability of the AI-driven semiconductor rally. SK Hynix shares have experienced increased volatility following the company’s recent Nasdaq listing, with market participants closely monitoring whether demand for AI infrastructure can maintain its current pace.
