SK Hynix, one of the world’s biggest memory‑chip makers, reported a record $64 billion quarterly profit on Wednesday, yet its shares dropped nearly 10% in Seoul. The company’s earnings, driven by the AI boom, were still viewed as a disappointment by investors.

The firm’s market cap topped $1 trillion in late May and it made a Nasdaq debut on July 10, raising more than $26 billion. SK Group, the parent company, announced a $500 billion partnership with Nvidia to supply next‑generation memory for AI data centers, underscoring confidence in the sector.

Despite these milestones, SK Hynix’s profit—93.9 trillion won, or about $64 billion—fell short of some bullish expectations and raised concerns about the durability of the AI boom. The stock fell as much as 19.6% before closing 9.6% lower. Shares of fellow South Korean chip maker Samsung Electronics and Japanese flash‑memory maker Kioxia also slipped, reflecting broader market volatility.

Investors now weigh whether the AI surge can sustain such high valuations, or if the sector is due for a correction.