SKHY stock dropped 7% in the overnight session late Tuesday, while MU and SNDK fell about 5% each.

  • The South Korean chip giant posted record revenue and operating profit numbers, but they fell short of analysts’ targets.
  • The report pressured U.S. memory stocks, and retail traders worried of a prolonged slump in the days to come.
  • Seagate reported Q4 revenue and profit about analysts’ targets, pushing its shares 3% higher overnight.

SK Hynix (SKHY) missed Wall Street expectations with its second-quarter (Q2) results on Tuesday, sending its shares lower and weighing on U.S. memory peers Micron (MU) and SanDisk (SNDK), while Seagate (STX) surged after delivering an upbeat earnings report.

U.S.-listed shares SKHY dropped 7% in the overnight session late Tuesday, while MU and SNDK fell about 5% each. Meanwhile, STX shares were up 3%. 

SK Hynix’s Q2 Results

The South Korean chipmaker posted record numbers – second-quarter revenue rose 257% year-over-year and 51% sequentially to 79.32 trillion won ($64.64 billion) and operating profit surged 557% to 60.54 trillion won – but they fell short of analysts’ targets. Wall Street analysts had modelled 84 trillion won in revenue and 64 trillion won in operating profit, according to estimates from LSEG. 

SK Hynix’s first-half revenue topped 100 trillion won for the first time, highlighting strong AI-driven demand. The company sells memory chips and other hardware used in data centers and consumer electronics, and counts U.S. tech giants including Nvidia among its customers.

SK Hynix listed its shares on Nasdaq on July 10 after the company raised $26.5 billion from U.S. investors.

Seagate’s Upbeat Q4 Report Keeps Stock Afloat

Meanwhile, Seagate said its fiscal fourth-quarter revenue increased 48% to $3.63 billion and adjusted earnings more than doubled to $5.71 per share, beating analysts’ expectations on both counts. The U.S. memory firm guided first-quarter 2027 revenue of $4.1 billion, plus or minus $100 million, and adjusted diluted EPS of $7.30, plus or minus $0.20.

The latest results come against a backdrop of heightened volatility in the semiconductor sector. Memory chip makers including Micron, SanDisk, SK Hynix rallied sharply for much of the year before tumbling in July, as investors questioned the durability of the memory upcycle, took profits, and rotated back into beaten-down Big Tech and software stocks. 

Korean chip stocks, including Samsung, have been highly volatile in recent weeks, with swings in the KOSPI often spilling over into sentiment around their U.S.-listed peers.

Retail And Analyst Views On SKHY, STX

“SK Hynix ‘miss’ may not be that bad. Seagate is good. But have to deal with Iran,” CNBC analyst Jim Cramer said in an X post. Iran targeted U.S. forces in the Middle East with several ballistic missiles late Tuesday stateside, U.S. Central Command said, raising tensions in the Middle East that had seen hostilities put on brief pause over the past few days.

SKHY was the top trending ticker on Stocktwits late Tuesday. The retail sentiment for the stock flipped to ‘bullish’ from ‘bearish’ the previous day and messages doubled in volume over the past 24 hours.

“$SKHY still viewed as a buy after earnings because the market saw the ER “miss” as temporary noise, while the long‑term AI memory thesis, supply constraints, valuation metrics, and capital expansion story remained extremely strong. In other words, the fundamentals were too good for investors to treat the dip as anything other than a buying opportunity,” a trader said.

Still, a large section of traders acknowledged that the stock’s decline could cascade into a broader selloff. “$SKHY Another bloodbath tomorrow and it will be a hard one,” said a trader.

The sentiment for STX shifted to ‘extremely bullish’ from ‘neutral,’ even as trades noticed how the stock’s post-earnings jump faded after SK Hynix’s report that came in hours after its own.

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