SK hynix shares took a hit this week after the memory chip giant reported quarterly results that left investors wanting more. The stock fell about 2% in Wednesday's premarket session, adding to an 8.98% drop the day before. The culprit? An operating profit that came in below expectations, even as revenue hit a record high.

Nasdaq futures were up 0.22% and S&P 500 futures gained 0.18% in early trading, suggesting the broader market wasn't too worried.

SK hynix Earnings Miss Overshadows Record Revenue

SK hynix reported second-quarter operating profit of 60.54 trillion won ($41.62 billion), up 557% from a year earlier but below the 64 trillion won ($43.99 billion) LSEG SmartEstimate. Revenue surged 257% to a record 79.32 trillion won ($54.53 billion).

The company also said 2026 capital spending is now expected to reach the high end of its 40 trillion won target range as it expands AI memory production capacity and advanced packaging capabilities.

Looking ahead, SK hynix expects third-quarter DRAM shipments to increase about 10% and NAND shipments to rise about 3%. For the full year, it forecasts DRAM demand growth of about 25% and NAND demand growth of about 18%.

Analyst Sees AI Demand Supporting Margins

Futurum analyst Rolf Bulk said SK hynix, along with rivals Samsung Electronics (OTC: SSNLF) and Micron Technology (NASDAQ: MU), could gain more stable earnings visibility as long-term AI supply deals reshape the memory-chip industry and reduce its reliance on boom-and-bust cycles.

Bulk told CNBC on Wednesday that high-bandwidth memory (HBM) margins appear close to peak levels after reaching roughly 75% to 80%. Still, he does not expect profitability to collapse because AI demand remains strong and supply stays constrained.

He expects margins to rise slightly in the back half of the year, then stabilize around 70% to 75% before gradually easing toward the end of the decade. Bulk said those margins remain unmatched in semiconductors, even compared with Taiwan Semiconductor Manufacturing Company (NYSE: TSM) and NVIDIA Corp. (NASDAQ: NVDA).

Long-Term Deals Reshape Memory

Bulk said long-term supply agreements are changing the investment case for SK hynix and its peers. SK hynix has disclosed deals with 10 customers, while Micron expects about half of its revenue to become tied to similar agreements over time.

He said the industry is moving away from a model driven almost entirely by cyclicality toward one where a large share of revenue comes through contracted supply at strong gross margins. Bulk said that shift should materially improve earnings visibility for SK hynix, Samsung and Micron and could support higher valuation multiples.

CXMT Trails The Leaders

Bulk told CNBC that ChangXin Memory Technologies' (CXMT) strong IPO and market performance do not make it an immediate threat to the top memory players. He said CXMT's chips remain "around two to three generations" behind SK hynix, Samsung and Micron.

He said CXMT spends about 20% to 30% more on a cost-per-bit basis, making its products less competitive on performance. However, tight supply and strong demand still allow CXMT to generate strong profitability.

Apple Adoption Looks Unlikely

Bulk said CXMT likely will not catch up soon because fab buildout limits and restricted access to tools from suppliers such as ASML Holding NV (NASDAQ: ASML) constrain its progress.

On reports that Apple Inc. (NASDAQ: AAPL) could use CXMT and Yangtze Memory Technologies Co, Ltd (YMTC) chips, Bulk said Apple has an incentive to diversify suppliers and pressure SK hynix and Samsung on pricing. However, he said Washington's security concerns make adoption unlikely.

SK hynix Price Action

SK hynix shares were down 1.85% at $127.75 during premarket trading on Wednesday, according to market data.