SK Hynix stock trades at 5 times earnings despite 257% revenue growth

SK Hynix just delivered one of the most impressive quarters in semiconductor history. Revenue surged 257% year-over-year to 79.3 trillion won. Operating profit exploded 557%. And the market’s response was to knock the stock down roughly 10%. Record numbers, skeptical market The South Korean memory chip maker reported Q2 2026 results on July 28-29 that would make most companies’ investor relations teams weep with joy. Revenue of 79.3 trillion won represented not just a 257% year-over-year jump but also a 51% sequential increase from the prior quarter. Operating profit hit 60.5 trillion won, up a staggering 557% compared to the same period last year. Those numbers came up short, though. Analysts had penciled in revenue closer to 84 trillion won, and the miss sent shares sliding. Concerns about a slowdown in HBM4 shipments, the next generation of high-bandwidth memory critical for AI workloads, added fuel to the selling. After the decline, SK Hynix traded at approximately 5 times next year’s expected earnings. For context, that’s the kind of multiple you’d typically see on a company facing existential questions about its business model, not one that just posted triple-digit revenue gr...