The CSOP SK Hynix Daily (2x) Leveraged Product (07709) tumbled 8.47% in early trading on Wednesday, as the underlying SK Hynix shares came under pressure after the South Korean chipmaker reported second-quarter earnings that fell short of analyst expectations.

SK Hynix posted a record operating profit of 60.5 trillion Korean won for the April-to-June period, surging 557% year-on-year, while revenue jumped 257% to 79.3 trillion won. However, both figures missed market forecasts, with analysts having anticipated operating profit of approximately 64.2 trillion won and revenue of around 83.9 trillion won. The earnings miss, attributed to a higher exposure to high-end memory chips that limited benefits from stronger price rallies in conventional memory, sparked a sell-off in SK Hynix shares. The company's American Depositary Receipts fell more than 5% in after-hours trading, while its domestic shares in South Korea dropped 4.5% before the market opened.

The decline in the leveraged product reflects the amplified effect of its daily 2x tracking mechanism, which magnifies the underlying stock's downward movement. The earnings-driven weakness in SK Hynix comes amid broader concerns over the sustainability of massive capital expenditures by technology giants on AI infrastructure, which has weighed on semiconductor stocks globally in recent weeks.