SK Hynix’s Earnings Miss Adds to Anxiety Over AI Boom

For South Korean memory-chip maker SK Hynix Inc., a more than 500% increase in second-quarter profit failed to meet market expectations, adding fuel to a rout that has pushed its U.S.-listed shares below their Nasdaq offering price. 

SK Hynix shares in Korea fell as much as 20% on Wednesday before paring losses to end the day down 9.6%. The chipmaker, one of the biggest beneficiaries of the artificial intelligence (AI) boom, reported its operating profit surged 557% year-on-year for the quarter that ended June 30, according to a company announcement. Still, the total of 60.5 trillion won ($41.7 billion) fell short of London Stock Exchange Group PLC’s average forecast of 64 trillion won.