SK Hynix's US$600 bil sell-off shows cracks in memory-chip boom

Charlotte Yang & Youkyung Lee / Bloomberg07-28

Analysts expect SK Hynix to report June-quarter sales more than tripled compared with a year ago to around US$57 billion, with a sixfold increase in operating profit.(July 28): A nearly US$600 billion...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2655836564?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-07-28 10:36","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2655836564","market":"nz","top_or_hot":-1,"title":"SK Hynix's US$600 bil sell-off shows cracks in memory-chip boom","media":"Charlotte Yang & Youkyung Lee / Bloomberg","content":"<div>\n<p>Analysts expect SK Hynix to report June-quarter sales more than tripled compared with a year ago to around US$57 billion, with a sixfold increase in operating profit.(July 28): A nearly US$600 billion...</p>\n\n<a href=\"https://www.theedgesingapore.com/news/tech/sk-hynixs-us570-bil-sell-shows-cracks-memory-chip-boom?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n","source":"edge_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SK Hynix's US$600 bil sell-off shows cracks in memory-chip boom</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSK Hynix's US$600 bil sell-off shows cracks in memory-chip boom\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-07-28 10:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.theedgesingapore.com/news/tech/sk-hynixs-us570-bil-sell-shows-cracks-memory-chip-boom?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS><strong>Charlotte Yang & Youkyung Lee / Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Analysts expect SK Hynix to report June-quarter sales more than tripled compared with a year ago to around US$57 billion, with a sixfold increase in operating profit.(July 28): A nearly US$600 billion...</p>\n\n<a href=\"https://www.theedgesingapore.com/news/tech/sk-hynixs-us570-bil-sell-shows-cracks-memory-chip-boom?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"HXSCL","symbol_name":"SK Hynix, Inc.","start_time":0,"source_url":"https://www.theedgesingapore.com/news/tech/sk-hynixs-us570-bil-sell-shows-cracks-memory-chip-boom?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","article_id":"2655836564","we_media_id":null,"thumbnails":[],"rights":{"source":"edge_highlight","url":"https://www.theedgesingapore.com/news/tech/sk-hynixs-us570-bil-sell-shows-cracks-memory-chip-boom?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2655836564","pubTimestamp":1785206160,"columns":[],"sourceInfo":{"source_id":"edge_highlight","name":"Edge"},"weMediaInfo":null,"summary":"Analysts expect SK Hynix to report June-quarter sales more than tripled compared with a year ago to around US$57 billion, with a sixfold increase in operating profit.","collect":0,"end_time":0,"defaultTopTitle":"theedgesingapore.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"HXSCL":"SK Hynix, Inc."},"translate_title":"SK海力士6000亿美元的抛售显示存储芯片繁荣的裂缝","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HXSCL":1.97},"content_text":"Analysts expect SK Hynix to report June-quarter sales more than tripled compared with a year ago to around US$57 billion, with a sixfold increase in operating profit.(July 28): A nearly US$600 billion ($776 billion) rout in just a little over a month has flipped SK Hynix Inc from one of the world's hottest artificial intelligence (AI) trades to one of the biggest portfolio question marks.\nShares of the South Korean memory chipmaker have plunged 47% from their all-time high in June on concerns about overcrowding and a surge in leverage-induced volatility. Its loss in market value over that span rivals that of even SpaceX.\nThe stock tumbled almost 15% on Tuesday after The Information reported on Chinese progress with deep ultraviolet (DUV) lithography machines, fuelling concerns over a potential flood of new capacity amid broader worries over the AI rally.\nWhile SK Hynix is expected to report another quarter of record earnings on Wednesday as the AI boom drives chip prices higher, investors are turning skittish. The primary fear is that rising memory costs will force customers to reduce usage and turn to cheaper alternatives.\n\"The debate now is whether memory is taking too much of the pie,\" said Andy Wong, the head of multiasset at Pictet Asset Management HK Ltd, whose fund has reduced its position in SK Hynix in recent weeks. The market wants to see if \"anything can shift the perception that SK Hynix is squeezing too much margin out of the supply chain\".\n\nThe South Korean company's shares have greater implications for global investors since the listing of its American depositary receipts, which have dropped below their July 9 offering price. The proliferation of leveraged exchange-traded funds tied to the stock has also grabbed attention due to the unprecedented volatility they have unleashed. \nThe stock is still on track for another year of triple-digit gains, buoyed by the firm's early lead in high-bandwidth memory (HBM) for AI. This month's pullback tracks broader caution over the tech hardware sector as doubts multiply over the durability of hyperscaler outlays.\nCrucial results are due this week from top tech firms including Meta Platforms Inc, whose plan to sell excess AI computing power stoked concerns over demand earlier this month. Apple Inc has already flagged cost pressures and is reported to be lobbying for approval to buy memory components from Chinese competitors including CXMT Corp.\nInvestors also await full results for the June quarter from larger rival Samsung Electronics Co. The world's biggest maker of conventional memory chips is catching up to SK Hynix in HBM, said Kim Minji, a portfolio manager at Must Asset Management in Seoul.\nFor SK Hynix shares, \"earnings results themselves won't provide much catalyst\", said Kim, adding that whether the company boosts shareholder returns including buy-backs is a key focus for investors. \"What's more important is the earnings results from the big hyperscalers, whether they will continue to increase their capex and how much demand they see,\" she said.\n\nThe stock's big sell-off has enhanced its traditional cheapness due to memory cyclicality. SK Hynix shares now trade at 3.7 times forward earnings estimates, halved compared with a month ago and below peer Micron Technology Inc's 6.2 times multiple.\nSK Hynix is a \"compelling buy\" given attractive valuations and ongoing deleveraging among South Korean retail investors, Shawn Oh, the head of Korea cash equities at NH Investment & Securities, wrote in a note. At the same time, \"we are seeing people de-grossing their positions, if not already lightly positioned, ahead of the US tech earnings season\".\nThe current round of results has seen a number of companies suffer big stock drops even after stellar numbers. Samsung's shares dropped more than 6% after its preliminary profit report on July 7, weighing on the broader Asian tech sector.\nAnalysts expect SK Hynix to report June-quarter sales more than tripled compared with a year ago to around US$57 billion, with a sixfold increase in operating profit.\n\"SK Hynix's earnings may also become a global sentiment test for AI hardware,\" said James Ooi, a market strategist at Tiger Brokers. \"Expectations are largely priced to perfection, so even a modest miss could prompt a sharp reaction.\"\nUploaded by Tham Yek Lee","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"-1","news_tag":"dataReport","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.47.0","shortVersion":"4.47.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2655836564","isCrawlerRequest":true}