South Korean chipmaker SK Hynix reported bumper quarterly results on Wednesday but fell short of lofty investor expectations fuelled by the AI boom, with the company racing to secure long-term supply deals to cushion the memory industry's volatile demand cycles. The Nvidia supplier's quarterly operating profit soared more than sixfold to a record high, but it said delays in shipments of some advanced products limited price gains for its mainstay dynamic random access memory (DRAM) chips.
Shares in SK Hynix tumbled 10% as the weaker-than-expected earnings heightened investor concerns about the sustainability of aggressive AI spending by tech firms.
