SK hynix (SKHY) shares plunged 5.01% in pre-market trading, extending a multi-day rout triggered by the company’s second-quarter earnings report that fell short of lofty market expectations despite setting all-time records.

The semiconductor giant posted operating profit surging 557% year-over-year and revenue jumping 257%, both historic highs. However, the results missed consensus estimates, marking the company’s first earnings miss during the current AI super-cycle. The shortfall, combined with broader pressure on chip stocks—the Philadelphia Semiconductor Index is down nearly 19% in July—and growing concerns over the sustainability of massive AI infrastructure spending, weighed heavily on investor sentiment. Adding to the negative tone, Barclays cut its target price on SK hynix to $300 from $330.

The selloff was further amplified by turmoil in South Korea’s leveraged ETF market and regulatory tightening, which has exacerbated volatility in underlying shares. Still, some analysts view the pullback as overdone, noting that demand from major cloud providers remains robust and long-term supply agreements are in place.