SK Hynix Q2 profit surges 557% to record high

SK Hynix reported a second-quarter operating profit of 8.23 trillion won, a 557% surge from a year earlier, but the result fell short of analysts' estimates. The company's revenue also reached a record high, driven by strong demand for memory chips used in artificial intelligence applications.

The shortfall affected investors, as the record profit missed the lofty expectations set by the market. According to the report, analysts had forecast an operating profit of 8.69 trillion won, making the actual figure a disappointment despite the massive year-over-year growth. The company's shares had risen significantly in anticipation of the AI-driven boom, and the miss led to a decline in after-hours trading.

The results matter because SK Hynix is a key supplier of high-bandwidth memory (HBM) chips essential for AI processors, and its performance is seen as a bellwether for the memory chip industry. The company's ability to meet the surging demand from AI applications has been a major driver of its recent growth, but the miss suggests that supply constraints or pricing pressures may be emerging.

For the quarter ended June 30, 2026, SK Hynix posted revenue of 16.42 trillion won, up 125% from the previous year. The operating profit of 8.23 trillion won compared with 1.25 trillion won a year earlier. The company's net profit was 5.22 trillion won, reversing a loss of 298 billion won in the same period last year. The operating margin reached 50%, reflecting the high profitability of its advanced memory products.

SK Hynix has been ramping up production of HBM3E chips, which are used in Nvidia's latest AI accelerators. The company began mass production of these chips in March 2026 and has been expanding capacity to meet demand. In the first quarter of 2026, SK Hynix reported an operating profit of 2.89 trillion won, already signaling a strong recovery from the previous year's downturn. The memory chip market has been on an upswing after a prolonged slump, fueled by the AI boom and a recovery in demand for PCs and smartphones.

Looking ahead, SK Hynix expects the demand for AI memory to remain strong, but it faces challenges in keeping up with the rapid pace of technological advancements and increasing competition. The company plans to invest heavily in expanding its production capacity for HBM and other advanced chips. Analysts will be watching closely to see if SK Hynix can maintain its market leadership and meet the high expectations for the rest of 2026.