SK Hynix profit jumps 557% on AI memory demand

SK Hynix reported second-quarter revenue of 79.32 trillion won and operating profit of 60.54 trillion won, up 557% year-over-year. The company is raising capital expenditure to $27 billion to expand memory production, but its shares fell despite the results as investors worried the AI-driven rally has outpaced fundamentals.

Why it matters: This is a direct read on how tight the AI compute supply chain has become — memory makers are now essentially AI infrastructure companies, with earnings swinging on Nvidia's build-out cycle. The stock drop despite blowout numbers echoes recent worries about an AI capex bubble, and pairs with reports elsewhere of DRAM and SSD price spikes rippling out to consumer hardware.