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6h ago

SK hynix’s Record Q2 Profit Falls Short as Shares Plunge and KOSPI Triggers Multiple Halts

The move highlights investor doubt over whether massive AI infrastructure spending will deliver sustained returns and shows leveraged retail positions can force rapid market-wide repricing.

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Chart of German share price index DAX (Deutscher Aktienindex) at the stock exchange in Frankfurt, Germany, July 22, 2026. REUTERS/Staff
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 28, 2026. REUTERS/Brendan McDermid/File Photo

Overview

  • SK hynix reported record second-quarter results but missed analyst revenue and operating profit estimates, and its shares plunged on Wednesday leading the sell-off.
  • The sharp fall in SK hynix dragged Samsung and other chip names lower and caused the Korea Exchange to activate market‑wide circuit breakers and trading suspensions.
  • Retail margin loans and single‑stock leveraged products amplified forced selling as brokers liquidated positions, prompting officials to review rules on leveraged ETFs and other stabilisation measures.
  • Company disclosures showed part of the huge net profit came from a one‑off sale of its Kioxia stake while SK hynix announced plans to boost capital spending by roughly 40 trillion won to expand AI memory production.
  • Market stress was worsened by earlier falls in Nvidia after reports about large OpenAI financing and by a strong debut from Chinese memory maker CXMT, which raised fresh worries about competition and supply dynamics.