SK hynix shares recovered after the memory-chip maker reported second-quarter revenue of 79 trillion won, below an 84 trillion won market estimate, as traders focused on a 30% quarter-on-quarter rise in DRAM selling prices and management’s forecast for higher third-quarter shipments.
The earnings release arrived after a sharp decline in U.S.-listed semiconductor stocks, where SK hynix and Micron shares each fell close to 9% and SanDisk dropped 14%, according to the figures provided in the market update. The initial reaction reflected concern that the chip industry’s AI-led rally had run ahead of demand. The rebound following SK hynix’s results suggested that pricing and order volumes remained more resilient than the headline revenue shortfall implied.
SK hynix said DRAM average selling prices increased 30% from the first quarter. DRAM, or dynamic random-access memory, is a core component in servers, personal computers and smartphones, and pricing is closely watched because it can move sharply when supply and demand tighten. A substantial increase in average selling prices gives memory producers more revenue per unit sold, helping to protect margins even when shipment growth is uneven.
Management also projected that third-quarter shipments would rise 10% from the prior quarter. That guidance points to continued demand for memory components, although it falls short of the stronger growth assumptions that had been incorporated into some market forecasts before the earnings report.
Pricing offsets a softer revenue result
The revenue miss places SK hynix in a more complicated position than a simple boom-or-bust AI narrative would suggest. Demand for high-performance server memory appears to be supporting prices, while total revenue has not matched the pace anticipated by the market.
The company said it plans to expand high-bandwidth memory capacity during the second half of the year. High-bandwidth memory, commonly known as HBM, stacks memory chips to provide much faster data transfer speeds for AI accelerators and other advanced computing systems. SK hynix is one of the main suppliers in a market where chip designers and cloud operators have sought more memory capacity alongside powerful processors.
Higher HBM output would make more supply available for systems linked to smartphones and PCs as well as data-center hardware. The timing matters because the memory market can turn quickly when capacity additions begin to catch up with demand. Stronger output could support customer orders, but it can also limit future price increases if supply expands faster than expected.
SK hynix said operating profit rose 557% to 60.54 trillion won, while cash reserves reached 88 trillion won, according to the figures included in the company-related material. The reported cash position would give the manufacturer substantial capacity to fund equipment purchases and production expansion, a useful advantage in the capital-intensive memory industry.
The company’s results indicate that hardware spending has not disappeared despite a more cautious market response to semiconductor valuations. AI infrastructure requires more than advanced processors: it also depends on memory, storage, networking equipment and power-intensive data centers. SK hynix’s pricing data suggests that memory suppliers are still benefiting from that supply-chain demand, even if traders are reassessing how much growth should already be reflected in share prices.
Oil uncertainty adds pressure to chip valuations
Geopolitical and macroeconomic concerns have intensified the selloff in parts of the semiconductor sector. Ongoing tensions involving the United States and Iran have added uncertainty around energy markets and supply routes, while changes in oil prices have fed into inflation expectations.
Chip stocks are particularly exposed when markets begin repricing interest-rate expectations. Semiconductor manufacturers and their customers require large upfront spending on factories, equipment and data-center infrastructure. Higher financing costs or a renewed inflation shock can reduce the valuation premium traders are willing to place on companies expected to deliver earnings further into the future.
The session also showed that the technology sector was not moving as a single group. Apple and Google shares held steadier and edged higher while memory-chip names came under pressure. The divergence reflected differences in how companies are funding and applying artificial intelligence.
Google’s capital expenditures include spending on its internally developed tensor processing units, or TPUs, which are designed to handle AI workloads. Apple’s AI strategy has been more focused on on-device features and software integration. Those different spending profiles can leave companies exposed to different parts of the AI supply chain, particularly as traders scrutinize the return on large infrastructure investments.
Circle expands its blockchain intellectual property portfolio
Separate from the chip market moves, stablecoin issuer Circle completed a purchase of blockchain-related intellectual property from IBM, acquiring more than 680 patent families and nearly 1,000 granted patents worldwide, according to the transaction summary.
Circle said the transaction makes it the largest holder of blockchain patents in the United States based on the disclosed figures. The portfolio expands the company’s technology base for USDC, its CPN payments network and the Arc platform.
Patent ownership does not automatically establish a commercial lead in digital payments, where regulation, distribution, liquidity and banking relationships remain critical. It can nevertheless give Circle greater control over technologies that may be relevant to transaction automation, blockchain settlement and compliance-oriented financial products.
The acquisition comes as requirements for digital-asset-linked financial services become more demanding in several major markets. Firms offering dollar-linked tokens or payments infrastructure increasingly need to demonstrate operational controls alongside technical capability. A deeper patent portfolio could strengthen Circle’s position in licensing discussions, product development and potential disputes over blockchain payment technology.
Circle’s shares had previously fallen to around $60 amid weakness in the broader crypto market, according to the market update. The IBM transaction does not directly alter stablecoin demand or crypto-market prices, but it gives Circle a larger set of assets connected to the infrastructure it is seeking to build around regulated digital payments.
Together, the developments show a market separating near-term price volatility from longer-term infrastructure spending. SK hynix’s shipment and pricing guidance supports continued demand for advanced memory, while Circle’s patent purchase extends the legal and technical foundation behind its payments products.
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