The memory chip sector is trading lower after industry heavyweight SK Hynix reported record second-quarter revenue and profit that still fell short of sky-high analyst expectations. Despite a massive surge in earnings driven by AI-related demand, the miss triggered a significant sell-off in SK Hynix shares in Korea, creating a ripple effect across the sector. This suggests investor concern that the AI-fueled rally has priced memory stocks for perfection, making them vulnerable to any signs of decelerating momentum.