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SK Hynix Misses Estimates Despite Profit Surge: ETFs in Focus
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Key Takeaways
SK Hynix missed Q2 estimates despite 557% operating profit growth, sparking AI valuation concerns.
Investors are eyeing leveraged ETFs like SKHA, SKHN, SKHX and SKHZ for tactical exposure.
Broader ETFs like HBMX and IVES provide diversified exposure while reducing stock-specific risk.
SK Hynix Inc. (SKHY - Free Report) , a major supplier of AI memory chips to NVIDIA (NVDA - Free Report) , reported a sharp year-over-year jump in second-quarter earnings. However, both profit and revenue fell short of Wall Street expectations, intensifying concerns that the AI-driven semiconductor boom may be losing momentum.
Revenue came in at 79.3 trillion won ($54.55 billion), missing the Zacks Consensus estimate of $59.05 billion. Revenues jumped 257% year on year. Operating profits of 60.54 trillion won fell short of 64 trillion won expected, per CNBC. Operating profit surged nearly 557% year on year.
AI Demand Remains Strong, but Growth Questions Emerge
SK Hynix said it secured multi-year contracts with around 10 customers, underscoring continued demand for its high-bandwidth memory (HBM) chips used in AI applications.
Still, investors are increasingly questioning whether the rapid pace of AI spending can be sustained. The earnings miss added to worries that soaring investments in AI infrastructure may not justify the industry's elevated valuations. Shares fell about 4.5% after hours on July 28, 2026.
Stock Faces Sharp Pullback
SK Hynix has seen a dramatic reversal in sentiment lately. The company has lost more than $500 billion in market value since June, as investors reassessed AI growth expectations and rising debt levels across the technology sector, per Bloomberg, as quoted on Yahoo Finance.
Outlook Matters
As the leading supplier of high-bandwidth memory (HBM) chips for NVIDIA's AI processors, SK Hynix has been one of the biggest beneficiaries of the AI boom. Investors are now focused on whether its guidance can support the stock's lofty valuation.
Pricing Concerns Weigh on Sentiment
Investors are also worried that rising semiconductor costs could eventually slow global demand by increasing prices for consumer electronics and prompting manufacturers to cut production of PCs, smartphones, and other devices.
Reflecting these concerns, brokerages such as Mirae Asset Securities recently lowered their second-quarter earnings estimates for SK Hynix, citing slower growth in average selling prices for memory chips, per the same Bloomberg source.
Long-Term Outlook Remains Positive
Despite near-term concerns, semiconductor manufacturers continue to project robust long-term demand. They argue that cloud service providers and AI developers are steadily increasing orders for advanced memory chips, supporting both shipment volumes and profit margins.
Earlier this month, SK Hynix Chief Executive Officer Kwak Noh-Jung told Bloomberg that the global shortage of advanced memory chips is likely to continue well beyond 2030, driven by sustained AI adoption across industries.
Going forward, the company aims to maximize production by utilizing existing manufacturing hubs in Icheon and Yongin, while also boosting NAND production and advanced packaging in Cheongju. Josh Gilbert, lead analyst for APAC at eToro, said the company’s gross margin of 83% indicate that pricing power is still thriving, per CNBC
ETFs in Focus
Before the earnings release, analysts remained highly bullish on the stock. However, missing investors’ lofty expectations may lead the stock see a downgrade and lowering of earnings estimates. If prices continue to fall in the near term, investors can play inverse leveraged ETFs of SK Hynix for some quick gains.
Tradr ETFs, recently launched long and short funds tracking SK Hynix Inc.'s U.S.-listed shares. While the Tradr 2X Long SK hynix Daily ETF (SKHA) provides double-leveraged bullish exposure to the stock, the Tradr 2X Short SK hynix Daily ETF (SKHN) offers double-leveraged inverse exposure to SKHY.
Similarly, the Leverage Shares 1x Short SK Hynix Daily ETF (SKHZ - Free Report) seeks 100% inverse daily exposure to the stock, while the Leverage Shares 2X Long SK Hynix Daily ETF (SKHX) provides double-leveraged bullish exposure.
Apart from these, investors can gain exposure to the stock through broader ETF offerings. The Tuttle Capital Concentrated Memory Stack ETF (HBMX - Free Report) allocates about 4.8% of its assets to SKHY, while the Dan Ives Wedbush AI Revolution ETF (IVES - Free Report) has a 3.49% weighting in the stock. This diversified approach helps reduce company-specific risk.
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SK Hynix Misses Estimates Despite Profit Surge: ETFs in Focus
Key Takeaways
SK Hynix Inc. (SKHY - Free Report) , a major supplier of AI memory chips to NVIDIA (NVDA - Free Report) , reported a sharp year-over-year jump in second-quarter earnings. However, both profit and revenue fell short of Wall Street expectations, intensifying concerns that the AI-driven semiconductor boom may be losing momentum.
Revenue came in at 79.3 trillion won ($54.55 billion), missing the Zacks Consensus estimate of $59.05 billion. Revenues jumped 257% year on year. Operating profits of 60.54 trillion won fell short of 64 trillion won expected, per CNBC. Operating profit surged nearly 557% year on year.
AI Demand Remains Strong, but Growth Questions Emerge
SK Hynix said it secured multi-year contracts with around 10 customers, underscoring continued demand for its high-bandwidth memory (HBM) chips used in AI applications.
Still, investors are increasingly questioning whether the rapid pace of AI spending can be sustained. The earnings miss added to worries that soaring investments in AI infrastructure may not justify the industry's elevated valuations. Shares fell about 4.5% after hours on July 28, 2026.
Stock Faces Sharp Pullback
SK Hynix has seen a dramatic reversal in sentiment lately. The company has lost more than $500 billion in market value since June, as investors reassessed AI growth expectations and rising debt levels across the technology sector, per Bloomberg, as quoted on Yahoo Finance.
Outlook Matters
As the leading supplier of high-bandwidth memory (HBM) chips for NVIDIA's AI processors, SK Hynix has been one of the biggest beneficiaries of the AI boom. Investors are now focused on whether its guidance can support the stock's lofty valuation.
Pricing Concerns Weigh on Sentiment
Investors are also worried that rising semiconductor costs could eventually slow global demand by increasing prices for consumer electronics and prompting manufacturers to cut production of PCs, smartphones, and other devices.
Reflecting these concerns, brokerages such as Mirae Asset Securities recently lowered their second-quarter earnings estimates for SK Hynix, citing slower growth in average selling prices for memory chips, per the same Bloomberg source.
Long-Term Outlook Remains Positive
Despite near-term concerns, semiconductor manufacturers continue to project robust long-term demand. They argue that cloud service providers and AI developers are steadily increasing orders for advanced memory chips, supporting both shipment volumes and profit margins.
Earlier this month, SK Hynix Chief Executive Officer Kwak Noh-Jung told Bloomberg that the global shortage of advanced memory chips is likely to continue well beyond 2030, driven by sustained AI adoption across industries.
Going forward, the company aims to maximize production by utilizing existing manufacturing hubs in Icheon and Yongin, while also boosting NAND production and advanced packaging in Cheongju. Josh Gilbert, lead analyst for APAC at eToro, said the company’s gross margin of 83% indicate that pricing power is still thriving, per CNBC
ETFs in Focus
Before the earnings release, analysts remained highly bullish on the stock. However, missing investors’ lofty expectations may lead the stock see a downgrade and lowering of earnings estimates. If prices continue to fall in the near term, investors can play inverse leveraged ETFs of SK Hynix for some quick gains.
Tradr ETFs, recently launched long and short funds tracking SK Hynix Inc.'s U.S.-listed shares. While the Tradr 2X Long SK hynix Daily ETF (SKHA) provides double-leveraged bullish exposure to the stock, the Tradr 2X Short SK hynix Daily ETF (SKHN) offers double-leveraged inverse exposure to SKHY.
Similarly, the Leverage Shares 1x Short SK Hynix Daily ETF (SKHZ - Free Report) seeks 100% inverse daily exposure to the stock, while the Leverage Shares 2X Long SK Hynix Daily ETF (SKHX) provides double-leveraged bullish exposure.
Apart from these, investors can gain exposure to the stock through broader ETF offerings. The Tuttle Capital Concentrated Memory Stack ETF (HBMX - Free Report) allocates about 4.8% of its assets to SKHY, while the Dan Ives Wedbush AI Revolution ETF (IVES - Free Report) has a 3.49% weighting in the stock. This diversified approach helps reduce company-specific risk.