SK Hynix posts sixfold rise in Q2 profit on AI chip demand, misses forecasts

SK Hynix reported record operating profits this week, reaching 60.5 trillion won for the April to June period. This performance represents a significant jump from the 9.2 trillion won reported one year ago. Despite these gains, the company missed analyst estimates of 64 trillion won. The earnings release highlights the tension in the semiconductor sector as companies navigate the high costs of AI infrastructure.

Leadership at SK Hynix remains positive regarding future demand. The company noted that major technology firms continue to expand their AI investments. To address the need for long-term stability, the chipmaker has finalized roughly 10 long-term agreements with key customers. These contracts include financial mechanisms like deposits to ensure supply chain reliability.

Market pressure remains a challenge. Shares in Seoul declined as investors weighed competition and the costs of AI financing. Analysts noted that SK Hynix faced pricing pressure compared to peers like Samsung Electronics, which raised contract prices more aggressively during this cycle. This difference contributed to the earnings shortfall despite the record-breaking volume.

Looking ahead, SK Hynix plans to increase capital expenditure to the high-40 trillion won range this year, up from 30.173 trillion won in 2025. The company finished the quarter with net cash at 88 trillion won and aims to push that balance past 100 trillion won. This strategy prioritizes operational stability as the business prepares for long-term memory demand in data centers.