Chip Stocks Tumble as SK Hynix Results Disappoint Investors
WHO:
Yahoo Finance - SK Hynix (000660.KS, SKHY), Nvidia (NVDA), AMD (AMD), Micron (MU), SanDisk (SNDK), Barclays analysts, Susquehanna analysts, Alphabet (GOOG, GOOGL), Finance Minister Koo Yun-cheol.
WHAT:
Yahoo Finance - SK Hynix's management reiterated that demand is expected to outpace supply through 2030.
Yahoo Finance - SK Hynix plans to ramp up AI memory production, raising investor concerns about potential overinvestment in AI infrastructure.
The Motley Fool - Micron's revenue in the fiscal third quarter (ended May 28, 2026) more than quadrupled year over year to $41.5 billion, up from $23.9 billion a quarter earlier, with net income reaching $28.2 billion.
The Motley Fool - Micron's fiscal fourth-quarter forecast calls for about $50 billion of revenue at a gross margin of approximately 86%.
The Motley Fool - Seagate's fiscal fourth quarter featured revenue of $3.6 billion, a non-GAAP gross margin of 52.7%, and adjusted earnings per share of $5.71.
The Motley Fool - Seagate's full-year revenue rose 34% to $12.2 billion, and free cash flow hit a record $3.1 billion.
The Motley Fool - Seagate's management guided for about $4.1 billion of fiscal first-quarter revenue with adjusted earnings per share of about $7.30.
Yahoo Finance - The PHLX Semiconductor Index (^SOX) fell more than 5%, extending losses from the prior session.
Yahoo Finance - Barclays analysts cut their price target on US-listed SK Hynix stock to $300 from $330.
Yahoo Finance - Micron stock declined another 6% through 1:30 p.m. ET.
benzinga.com - Micron shares have fallen below the $820 level, which recently served as a support floor.
Yahoo Finance - Semiconductor stocks fell more than 5% as SK Hynix reported a record second quarter operating profit that rose 557% from a year earlier but fell short of expectations.
Yahoo Finance - Nvidia stock dropped more than 3%, AMD fell roughly 5%, and Micron and SanDisk were down 9% and 7%, respectively.
Yahoo Finance - US-listed SK Hynix shares dropped more than 2%.
Yahoo Finance - SK Hynix plans to boost 2026 capital spending by roughly 50% to at least $31 billion.
The Motley Fool - Micron stock declined another 6% through 1:30 p.m. ET.
WHERE:
Yahoo Finance - The KOSPI Composite (^KS11) in Asia fell nearly 6%.
WHEN:
Yahoo Finance - SK Hynix plans to increase capital spending in 2026.
WHY:
Yahoo Finance - Investor concerns were fueled by SK Hynix's earnings miss, reflecting a less favorable product mix rather than weakening demand for AI memory chips.
Yahoo Finance - Investor concerns arose due to SK Hynix's earnings miss reflecting a less favorable product mix and worries about AI-related spending sustainability.
The Motley Fool - Korea is curbing investments in leveraged exchange-traded funds (ETFs) to prevent individual investors from losing money.
HOW:
The Motley Fool - Korea will limit retail investment in leveraged ETFs by increasing trading costs and capping the percentage of an investor's total portfolio invested in such products, although specific details have not yet been decided.
The Motley Fool - Korea will limit retail investment in leveraged ETFs by increasing trading costs and capping the percentage of an investor's total portfolio invested in such products.
(UPDATED July 30, 2026 07:56 UTC)
SK Hynix's management has announced that they expect demand to outpace supply through 2030, while also planning to ramp up AI memory production, which has raised concerns among investors about potential overinvestment in AI infrastructure. In other news, Micron reported a remarkable fiscal third-quarter revenue of $41.5 billion, more than quadrupling year over year, and they forecast about $50 billion in revenue for the fiscal fourth quarter with a gross margin of approximately 86 percent. Meanwhile, Seagate's fiscal fourth quarter showed revenue of $3.6 billion and a full-year revenue increase of 34 percent to $12.2 billion, with management guiding for around $4.1 billion in fiscal first-quarter revenue and adjusted earnings per share of about $7.30.
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(UPDATED July 30, 2026 06:48 UTC)
The PHLX Semiconductor Index has dropped more than 5%, continuing a downward trend from the previous session, while Micron's stock has also declined by another 6%, falling below the $820 level that recently acted as a support floor. Concerns among investors were heightened following SK Hynix's earnings miss, which indicated a less favorable product mix rather than a decline in demand for AI memory chips, leading Barclays analysts to cut their price target on SK Hynix stock from $330 to $300. In response to market conditions, Korea is planning to limit retail investment in leveraged ETFs by increasing trading costs and capping the percentage of an investor's total portfolio that can be allocated to these products, although specific details are still pending.
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(UPDATED July 30, 2026 05:59 UTC)
Semiconductor stocks took a hit today, with SK Hynix reporting a record second quarter operating profit that soared 557% from a year earlier but still fell short of expectations, leading to a more than 5% drop in the sector. Notably, Nvidia's stock dropped over 3%, AMD fell roughly 5%, and Micron and SanDisk saw declines of 9% and 7%, respectively, while SK Hynix shares listed in the U.S. fell more than 2%. Amid these developments, SK Hynix plans to increase its capital spending in 2026 by about 50% to at least $31 billion, even as investor concerns grow over the sustainability of AI-related spending and Korea implements measures to limit retail investment in leveraged exchange-traded funds.