AI memory trade cools as SK Hynix profits miss lofty expectations drag NVDA, AMD

Semiconductor stocks slid after SK Hynix reported a record second-quarter profit that rose 557% year over year but missed lofty expectations, triggering a broader unwind of AI optimism. The PHLX Semiconductor Index fell by more than 5% as Nvidia and AMD dropped about 3–5%, while memory makers Micron and SanDisk fell roughly 9% and 7%. SK Hynix said demand is expected to outpace supply through 2030 and plans to raise 2026 capex by about 50% to at least $31 billion to boost AI-memory production, feeding worries about overinvestment in AI infrastructure even as management kept a positive longer-term demand view. The move comes amid a hawkish Fed stance weighing on sentiment and ongoing questions about whether hyperscalers’ AI investments will yield the expected returns.