SK hynix Inc. (NASDAQ:SKHY) stock fell more than 3% in Tuesday’s premarket session, extending Monday’s 7.47% decline as investors continued to exit artificial intelligence-linked semiconductor stocks ahead of the company’s quarterly earnings. The world’s second-largest memory chipmaker is scheduled to report second-quarter 2026 results on Wednesday, July 29.
The stock has shifted from one of the hottest AI memory trades to a major test of investor confidence as concerns over crowded positioning, China competition, and hyperscaler spending weigh on the sector.
The weakness came amid another risk-off session for technology shares. Nasdaq futures fell about 0.7%, while S&P 500 futures edged lower. Micron Technology Inc. (NASDAQ:MU) stock also dropped more than 4% in premarket trading.
AI Memory Trade Faces Pressure
SK Hynix shares have plunged nearly 47% from their June peak, wiping out almost $600 billion in market value in a little over a month. The sell-off accelerated after reports of Chinese progress in deep-ultraviolet lithography machines raised fears of new memory capacity, while broader doubts over the AI rally hit chip stocks, Bloomberg reported on Tuesday.
Pictet Asset Management’s Andy Wong said investors are debating whether memory makers are capturing too much of the AI supply-chain economics. He said the market wants to see whether anything changes the perception that SK Hynix is extracting excessive margin from customers.
Must Asset Management portfolio manager Kim Minji told Bloomberg that SK Hynix’s earnings alone may not provide much of a catalyst. She said investors will focus more on whether the company boosts shareholder returns, including buybacks, and whether large hyperscalers keep raising capital spending.
NH Investment & Securities’ Shawn Oh told Bloomberg that SK Hynix is a compelling buy, citing attractive valuation and deleveraging by Korean retail investors, though he said some investors are cutting exposure ahead of U.S. tech earnings season.
Price Action
SKHY Stock Price Activity: SK hynix shares were down 4.80% at $136.17 during premarket trading on Tuesday, according to Benzinga Pro data.
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