Tech rout roils markets after SK Hynix profits disappoint
Financial Times · 2026-07-29
Global markets experienced a tech downturn following SK Hynix's disappointing earnings report, signaling investor concerns about the sustainability of the AI boom. The South Korean chip giant missed LSEG SmartEstimate's forecast of Won64tn, with sales of Won79.3tn ($50.7bn) falling short despite a 257 percent jump. SK Hynix shares initially plunged nearly 19 percent before recovering to a 6 percent loss, while its rival Samsung Electronics weakened 3.9 percent. Seoul's Kospi index dropped as much as 13 percent before trading down 6 percent, marking it as nearly twice as volatile as Japan's market this year. Analysts like Song Zhe at BNP Paribas Asset Management suggest the semiconductor market ran "too fast too far," while Kim Young-geon of Mirae Asset Securities noted new concerns about China's lithography equipment. SK Hynix's stock has now shed over half its value since its June peak, amid growing doubts over AI spending durability, exacerbated by its greater exposure to high-bandwidth memory chips. Despite management's insistence that oversupply risk remains "limited" and that cloud service providers will maintain AI spending post-2027, the market reacted negatively to the financial miss.
*The full article also explores executive statements about securing mid-to-long-term business stability through long-term supply agreements and their continued optimism regarding AI's impact on demand.*