KIS lowers SK Hynix's Q2 earnings forecast; shares fall 12%
SK Hynix shares fell 12% after a brokerage report projected Q2 earnings below market consensus. The shortfall is attributed to the company's high reliance on HBM chips, which have fixed contract pricing compared to the rising spot prices of standard DRAM and NAND.
Why it matters
This highlights the complex relationship between specialized AI hardware pricing and broader semiconductor market fluctuations.
On July 13, South Korean local brokerage KIS released a forecast report for SK Hynix's second-quarter performance. SK Hynix is expected to generate revenue of 8.09 trillion Korean won in Q2, up 54% quarter-over-quarter and a substantial 264% year-over-year; operating profit is projected at 6.04 trillion Korean won, up 61% quarter-over-quarter and 556% year-over-year.
The numbers look impressive, but the issue is that the market consensus expectation was 65 trillion KRW, and KIS's forecast was about 8% below consensus.
This deviation directly triggered the market.
After the opening of the Korean stock market, SK Hynix's stock price quickly dropped more than 10%, falling below the 2 million KRW mark, and has corrected by 33% from its historical high on June 25 in just three weeks.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in