The Verified Consensus: Operating Profit and Revenue

The securities industry widely expects the company to surpass 6.4 trillion won in operating profit . Here is the verified range across multiple sources:

• Operating profit consensus: ₩62–68 trillion (rough range from several brokerages) , with a more commonly cited Street consensus near ~₩65.3 trillion . Korea Investment & Securities (KIS) issued a below-consensus estimate of ₩60.4 trillion on July 13, which is ~8% below the then-market consensus of ~₩65 trillion . KIS projects operating profit up ~61% QoQ and ~556% YoY at that level .
• Revenue consensus: Approximately ₩80.9–82.5 trillion . KIS specifically forecasts ₩80.9 trillion, up 54% QoQ and 264% YoY . A consensus figure of ~₩82.46 trillion is also cited . Investing.com lists a revenue forecast of ₩83.03 trillion .
• Operating profit margin: KIS projects 74.6%, while BLOTER (citing FnGuide) estimates roughly 77%, which would be 5 percentage points above the Q1 record of 72% .

Key Caution — The Consensus Was Revised Downward

On July 13, KIS analyst Minsook Chae cut her Q2 operating profit forecast to ₩60.4 trillion (8% below the prior consensus of ~₩65 trillion), citing weaker commodity DRAM price increases and a higher HBM mix that lowered blended ASP growth . KIS revised its Q2 DRAM blended ASP growth estimate down to 28.9% QoQ (from 50% previously) and commodity DRAM ASP growth to 34.2% (from 60.6%), reflecting that HBM's higher mix is pulling average prices lower even as volumes soar . This revision triggered a sharp stock sell-off — SK Hynix shares fell as much as 12% on the news . So the consensus has been in flux, making the July 29 print particularly important.

Q1 2026 Record Results

SK Hynix posted a record Q1 2026 operating profit of ₩37.6 trillion on revenue of ₩52.6 trillion, with an operating margin of 72% . Profit had jumped roughly five-fold from the prior year , already establishing it as the dominant beneficiary of the AI memory boom. CFO Kim Woo-hyun stated on the Q1 earnings call that demand for high-bandwidth memory will exceed supply for the next three years .

Nasdaq Listing Aftermath: Record Raise, Sharp Correction

• SK Hynix raised $26.5 billion by pricing 177.9 million American Depositary Shares at $149 each on Nasdaq under ticker "SKHY" on July 10, 2026 — the world's second-largest stock sale ever, behind only SpaceX .
• On its first trading day, the ADR surged ~12.8–13%, opening at $170 and closing at $168.01 .
• But the stock had already fallen ~25% from its record high in the weeks leading up to the listing, and the broader trend continued downward . The KIS downgrade on July 13 compounded selling pressure .
• Shares suffered a record single-day decline of 15.4% in Seoul on July 13 . Business Insider reported a drop of as much as 13.2% . The stock declined significantly from its peak, but specific price points of ₩2.99 million to ₩1.76 million were not directly verified in the available sources.

Drivers of the AI Memory Supercycle

• Commodity DRAM price increases — Despite the KIS downward revision, DRAM prices remain dramatically elevated. Morgan Stanley earlier expected average DRAM prices to rise 62% in 2026 .
• HBM leadership — SK Hynix remains the dominant supplier of high-bandwidth memory for Nvidia's AI accelerators, with demand exceeding supply . Bank of America named SK Hynix the global memory industry's "Top Pick" for 2026, forecasting a "supercycle similar to the boom of the 1990s" .
• Enterprise SSD demand — Strong NAND recovery and surging enterprise SSD orders from North American cloud service providers are a key secondary growth engine . S&P Global expects NAND flash revenue to climb 330% year-over-year .

Investor Concerns About Sustainability

The memory industry's traditional boom-and-bust cycle is the central worry. Analysts warn that massive capacity investments by Samsung and SK Hynix — hundreds of billions of dollars over the next decade — raise the risk of future oversupply and a sharp downturn . Reuters noted that chip plants take years to build and ramp up, meaning much of the new capacity will not arrive until well into the next decade .

SK Group Chairman Chey Tae-won himself said in July 2026 that current AI memory prices are "too high" and argued the industry should focus on expanding supply rather than maximizing short-term pricing power, signaling concern that elevated prices could invite competitive risk .

Volatility in SK Hynix's stock — including a record single-day plunge in the Kospi after the company signaled it might slow its AI memory business — has been described as evidence of "excessive froth" that calls the rally's sustainability into question .

While some analysts argue that AI has structurally broken the old cyclical pattern (a "supplier-led shortage cycle" that could persist through 2027 ), others caution that the market's refusal to look past peak earnings is a classic late-cycle signal . Deutsche Bank advised investors to "remain prepared for ongoing AI-related disruptions" .

What to Watch on July 29

The July 29 report will be a crucial test. The core debate has shifted from "is demand strong" to "how durable are pricing power, HBM leadership, and supply discipline through 2027 and beyond" . Key questions include: Will operating profit hit the ~₩60–65 trillion range at margins approaching 75–77%? Did the KIS downgrade accurately capture the HBM mix effect on ASPs? And can SK Hynix maintain its dominant position in HBM as Samsung ramps up production?

The Verified Consensus: Operating Profit and Revenue

The securities industry widely expects the company to surpass 6.4 trillion won in operating profit . Here is the verified range across multiple sources:

• Operating profit consensus: ₩62–68 trillion (rough range from several brokerages) , with a more commonly cited Street consensus near ~₩65.3 trillion . Korea Investment & Securities (KIS) issued a below-consensus estimate of ₩60.4 trillion on July 13, which is ~8% below the then-market consensus of ~₩65 trillion . KIS projects operating profit up ~61% QoQ and ~556% YoY at that level .
• Revenue consensus: Approximately ₩80.9–82.5 trillion . KIS specifically forecasts ₩80.9 trillion, up 54% QoQ and 264% YoY . A consensus figure of ~₩82.46 trillion is also cited . Investing.com lists a revenue forecast of ₩83.03 trillion .
• Operating profit margin: KIS projects 74.6%, while BLOTER (citing FnGuide) estimates roughly 77%, which would be 5 percentage points above the Q1 record of 72% .

Key Caution — The Consensus Was Revised Downward

On July 13, KIS analyst Minsook Chae cut her Q2 operating profit forecast to ₩60.4 trillion (8% below the prior consensus of ~₩65 trillion), citing weaker commodity DRAM price increases and a higher HBM mix that lowered blended ASP growth . KIS revised its Q2 DRAM blended ASP growth estimate down to 28.9% QoQ (from 50% previously) and commodity DRAM ASP growth to 34.2% (from 60.6%), reflecting that HBM's higher mix is pulling average prices lower even as volumes soar . This revision triggered a sharp stock sell-off — SK Hynix shares fell as much as 12% on the news . So the consensus has been in flux, making the July 29 print particularly important.

Q1 2026 Record Results

SK Hynix posted a record Q1 2026 operating profit of ₩37.6 trillion on revenue of ₩52.6 trillion, with an operating margin of 72% . Profit had jumped roughly five-fold from the prior year , already establishing it as the dominant beneficiary of the AI memory boom. CFO Kim Woo-hyun stated on the Q1 earnings call that demand for high-bandwidth memory will exceed supply for the next three years .

Nasdaq Listing Aftermath: Record Raise, Sharp Correction

• SK Hynix raised $26.5 billion by pricing 177.9 million American Depositary Shares at $149 each on Nasdaq under ticker "SKHY" on July 10, 2026 — the world's second-largest stock sale ever, behind only SpaceX .
• On its first trading day, the ADR surged ~12.8–13%, opening at $170 and closing at $168.01 .
• But the stock had already fallen ~25% from its record high in the weeks leading up to the listing, and the broader trend continued downward . The KIS downgrade on July 13 compounded selling pressure .
• Shares suffered a record single-day decline of 15.4% in Seoul on July 13 . Business Insider reported a drop of as much as 13.2% . The stock declined significantly from its peak, but specific price points of ₩2.99 million to ₩1.76 million were not directly verified in the available sources.

Drivers of the AI Memory Supercycle

• Commodity DRAM price increases — Despite the KIS downward revision, DRAM prices remain dramatically elevated. Morgan Stanley earlier expected average DRAM prices to rise 62% in 2026 .
• HBM leadership — SK Hynix remains the dominant supplier of high-bandwidth memory for Nvidia's AI accelerators, with demand exceeding supply . Bank of America named SK Hynix the global memory industry's "Top Pick" for 2026, forecasting a "supercycle similar to the boom of the 1990s" .
• Enterprise SSD demand — Strong NAND recovery and surging enterprise SSD orders from North American cloud service providers are a key secondary growth engine . S&P Global expects NAND flash revenue to climb 330% year-over-year .

Investor Concerns About Sustainability

The memory industry's traditional boom-and-bust cycle is the central worry. Analysts warn that massive capacity investments by Samsung and SK Hynix — hundreds of billions of dollars over the next decade — raise the risk of future oversupply and a sharp downturn . Reuters noted that chip plants take years to build and ramp up, meaning much of the new capacity will not arrive until well into the next decade .

SK Group Chairman Chey Tae-won himself said in July 2026 that current AI memory prices are "too high" and argued the industry should focus on expanding supply rather than maximizing short-term pricing power, signaling concern that elevated prices could invite competitive risk .

Volatility in SK Hynix's stock — including a record single-day plunge in the Kospi after the company signaled it might slow its AI memory business — has been described as evidence of "excessive froth" that calls the rally's sustainability into question .

While some analysts argue that AI has structurally broken the old cyclical pattern (a "supplier-led shortage cycle" that could persist through 2027 ), others caution that the market's refusal to look past peak earnings is a classic late-cycle signal . Deutsche Bank advised investors to "remain prepared for ongoing AI-related disruptions" .

What to Watch on July 29

The July 29 report will be a crucial test. The core debate has shifted from "is demand strong" to "how durable are pricing power, HBM leadership, and supply discipline through 2027 and beyond" . Key questions include: Will operating profit hit the ~₩60–65 trillion range at margins approaching 75–77%? Did the KIS downgrade accurately capture the HBM mix effect on ASPs? And can SK Hynix maintain its dominant position in HBM as Samsung ramps up production?