SK Hynix Inc.’s shares slid after record quarterly results failed to impress investors grappling with stagnant smartphone demand and questions about AI spending in 2025.

SK Hynix Inc., a major supplier of memory chips, has announced record quarterly earnings. However, investors have reacted cautiously. Concerns about smartphone demand and future AI spending have tempered enthusiasm.

HBM chips a key component of AI processors, with SK Hynix serving as a major supplier to AI giant NVIDIA Corporation (NASDAQ: NVDA ). The company has greatly benefited from a ramp-up in AI demand over the past two years, with its investments in increased capacity and advanced chip production now bearing fruit.