SEOUL, July 29, 2026, 08:02 KST
- Shares of SK hynix in Seoul ended trading at ₩1.55 million, a decrease of 14.65%. The company’s U.S. depositary shares dropped 8.99% to $130.17.
- The drop in Korea wiped out nearly ₩190 trillion from equity values, approximately triple the anticipated second-quarter operating profit.
- KRX trading had yet to start. SK hynix planned to release results before 09:00 KST, with its call set for 09:00.
SK hynix Inc. (KRX:000660; NASDAQ:SKHY) is under pressure to maintain record profits following a sharp drop in its stock. Shares in Seoul ended down 14.65% at ₩1.55 million on Tuesday, while U.S. shares fell 8.99%.
The drop in Korea wiped out roughly ₩190 trillion in market value. This figure is based on Google Finance’s estimate of 712.7 million shares in circulation. The decline amounts to close to triple the forecast quarterly operating income.
The gap serves as an indicator for investors. It indicates traders are sceptical about how long the profit cycle will last, even as they anticipate another strong quarter. Attention has shifted to issues related to China, funding for AI, and the outlook for memory supply.
| Measure | Latest or preliminary estimate | Comparison |
|---|---|---|
| Seoul close, July 28 | ₩1,550,000, fell 14.65% | Five-session loss: -15.58% |
| One-day equity-value loss | Roughly ₩190 trillion | 3.0 times Q2 projected profit |
| Q2 revenue | ₩84.1 trillion | Surged 60.0% from Q1 |
| Q2 operating profit | ₩64.1 trillion | Up 70.4% versus Q1 |
| Q2 operating margin | 75%–77% | Margin for Q1: 72% |
The Q2 numbers are initial estimates provided by brokerages. SK hynix had not published the results as of press time. The company stated that its announcement would be issued before 09:00 KST.
The KRX had yet to open its regular session. The opening auction starts at 08:30, with standard trading commencing at 09:00. As a result, Seoul’s initial response on Wednesday had not taken place.
SK hynix shares declined by 15.58% over the past five sessions through Tuesday. However, the stock maintained a 138.10% gain for 2026. In the U.S., its shares closed 12.6% under their $149 offer price.
The selloff on Tuesday extended past a single stock. The KOSPI slipped 10.84%, and Samsung Electronics Co. Ltd. KRX:005930 slid around 13.4%. Meanwhile, shares of Micron Technology Inc. NASDAQ:MU were down 8.95% in New York trading.
SK hynix trailed the KOSPI with an underperformance of 3.81 percentage points and fell 5.70 points short of Micron. The decline was influenced by both general chip sector weakness and SK hynix-specific factors.
China provided the initial spark. Shares of CXMT Corp. SHA:688825 soared following a strong debut on the Shanghai exchange. News regarding domestic deep-ultraviolet (DUV) lithography tools heightened concerns about a potential acceleration in Chinese production capacity.
Concerns over AI funding intensified the strain. Investors raised uncertainty about whether spending on data centres will be enough to maintain present demand for chips. “We seem to be at the despair part of the selloff,” said Matt Simpson, senior analyst at StoneX Group Inc. NASDAQ:SNEX. Reuters
The level of competition is still inconsistent. Cameron Systermans at Mercer Investments noted that CXMT poses a risk in the commodity dynamic random-access memory, or DRAM, market. However, the company continues to lag Korean rivals by several years in the high-bandwidth memory, or HBM, segment. SK hynix currently provides HBM to NVIDIA Corp. NASDAQ:NVDA.
Short-term fundamentals are solid. Fourteen Korean securities firms project second-quarter sales at ₩84.1 trillion and operating profit at ₩64.1 trillion. Both figures would mark new records.
According to KB Securities analyst Kim Dong-won, “sales to global tech companies and AI data center operators” are expected to account for roughly 70% of quarterly revenue. This proportion delivers stronger pricing compared to memory sales aimed at consumers. Yonhap News
Management commentary on margins, contract pricing, and investment prospects is now in focus. Investors will look to Samsung’s detailed Q2 results, due Thursday, for further insights from an industry peer.
Key risks include accelerated Chinese production, reduced AI investment and declining memory prices. Korea’s leveraged single-stock products might further intensify Wednesday’s market reaction.
A report in line with consensus would validate the surge in earnings, but it would leave the valuation argument unresolved. Investors require proof that present margins can endure beyond Tuesday’s turmoil.
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