Nvidia, Micron, AMD sink as SK Hynix results fail to impress, AI trade unwinds - Yahoo Finance

What the report says

Yahoo Finance reported that semiconductor shares sold off Wednesday after South Korea’s SK Hynix posted record second-quarter operating profit but still failed to meet elevated market expectations. The weakness added to a broader pullback in the artificial intelligence trade, with the PHLX Semiconductor Index down more than 5%. Nvidia fell more than 3%, AMD dropped about 5%, and memory-related names Micron and SanDisk were off roughly 9% and 7%, respectively, after paring earlier losses.

According to Yahoo Finance, SK Hynix’s operating profit was up 557% from a year earlier, but investors focused on the shortfall versus forecasts and on whether the pace of AI-linked spending can continue. The company’s U.S.-listed shares declined more than 2%. Yahoo said the miss was tied to a less favorable product mix, rather than weaker demand for AI memory chips, and noted that management still expects demand to exceed supply through 2030.

The report said SK Hynix also plans to raise 2026 capital spending by about 50% to at least $31 billion as it expands AI memory output. That fueled concerns about overinvestment in AI infrastructure, while a hawkish Federal Reserve interest-rate hold added pressure to market sentiment. Barclays and Susquehanna both reduced price targets after the results, though Barclays kept an Overweight rating on the U.S.-listed shares.

Yahoo Finance placed the move in the context of a wider reassessment of chip stocks, which had climbed with enthusiasm for AI before weakening from June highs. Investors are also watching spending plans from large cloud and technology companies, including Microsoft, Amazon and Meta, as markets debate whether heavy AI infrastructure investment will produce sufficient returns.