SK hynix (SKHY) shares tumbled 11.97% in pre-market trading on Wednesday, as the memory chip giant’s record-breaking second-quarter results fell short of elevated market expectations, triggering a sharp selloff in the semiconductor sector.

The company reported a 557% surge in operating profit to 60.54 trillion won and a 257% jump in revenue to 79.32 trillion won, both quarterly records. However, these figures missed analyst consensus, which had forecast operating profit of approximately 64.2 trillion won and revenue of around 83.9 trillion won. The miss was attributed to a weaker product mix, a slower pace of memory price increases, and the impact of long-term supply agreements that locked in prices, limiting the benefit from spot market rallies.

Investor sentiment was further dampened by broader concerns that the AI-driven boom may be peaking, with analysts warning that the “absolutely perfect” earnings could represent a high point. The results also failed to provide significant details on shareholder returns or long-term contract pricing mechanisms, adding to the uncertainty. The pre-market plunge extended a punishing month for chip stocks, as doubts over the sustainability of massive AI infrastructure investments continued to weigh on the sector.