On the morning of July 29, Japanese and South Korean stock markets opened higher. The Nikkei 225 Index gained 0.6% at the open to 62,734.68 points, with the automotive sector standing out. The Korea Composite Stock Price Index (KOSPI) also strengthened, rising 1.1% to 6,089.11 points at the open. Semiconductor giants Samsung Electronics and SK Hynix recorded gains of over 3% and 2%, respectively.
As a core supplier of high-bandwidth memory (HBM) for Nvidia, SK Hynix's latest second-quarter financial report demonstrated strong growth momentum in absolute terms. Revenue surged 257% year-on-year to 79.32 trillion won, up 51% quarter-on-quarter. Operating profit skyrocketed 557% year-on-year to 60.54 trillion won, with an operating profit margin reaching 76%. Net income, affected by one-time investment gains, jumped 1,242% year-on-year to 93.92 trillion won.
Despite the impressive figures, the results did not fully meet the market's previously high expectations. Analysts had predicted operating profit of approximately 64.2 trillion won and revenue of about 83.9 trillion won; the actual data fell slightly below these levels. The earnings surge triggered market volatility, reflecting an expectation correction within the AI chip sector. Market analysts noted that when companies become key links in the AI supply chain, investors focus not only on revenue but also on whether profit margins and guidance can support stock valuations.
Recent market concerns center on the potential cooling of the AI boom, rising debt levels among tech companies, and leveraged products linked to semiconductor stocks amplifying price volatility. Since hitting highs in late June, SK Hynix's market cap has evaporated by approximately 45%, with US-traded shares touching post-listing lows. However, in after-hours trading following the earnings announcement, the stock price initially fell over 9% before recovering, and rose again at the next day's open.
With Samsung Electronics and SK Hynix holding core positions in the memory chip supply chain, the South Korean stock market has become a risk observation window for the global AI and semiconductor sectors. Data shows that the 60-day correlation coefficient between the KOSPI and the Nasdaq 100 Index has risen to 0.46, approaching a two-year high and nearly triple the five-year average. Several international asset management firms have recently increased their focus on the South Korean market, viewing it as a key barometer of global tech sentiment. The market is closely watching to see whether this earnings report represents a brief bump in the AI sector or a prelude to a shift in the business cycle.
