SK Hynix Sinks After Nasdaq Debut Amid Profit-Taking
Investors booked profits after the U.S. listing, while analysts said caution over second-quarter earnings and memory-chip demand also weighed on sentiment.
- On July 13, Hynix shares sank in Seoul, falling 10 per cent on the Korea Exchange and dragging the benchmark Kospi down 5.6 per cent.
- The decline followed the company's US$26.5 billion American offering, which closed July 10 at a 15 per cent premium to Seoul-listed shares after ADRs climbed 13 per cent.
- Korea Investment & Securities projected on July 13 that operating profit may trail consensus by 8 per cent, citing the company's large HBM revenue share where prices are rising more slowly than conventional chips.
- Jason Minsang Kam, head of active equity management at Kyobo Life Insurance, said the momentum from The New York was already priced in, with the stock trading down 9 per cent at 11:25 am local time.
- Hynix remains a critical supplier of HBM for Nvidia's AI processors, with South Korean shares skyrocketing more than 25-fold since the end of 2022 driven by record profits.
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59 Articles
SK Hynix Raises $26.5 Billion in the Second-Biggest Share Sale Ever
SK Hynix's record-breaking Nasdaq debut gives U.S. investors a new way to play the AI boom, but the timing also serves as a reminder that even the hottest semiconductor stocks remain deeply cyclical.
SK Hynix shares plunge following strong US market debut
SK Hynix shares went down more than 15% in Seoul on Monday after the chipmaker’s strong Nasdaq debut. According to CNBC, this decline reflects profit-taking and uncertainty over how the U.S.-listed shares should be valued relative to the Korean stock. Analysts say that the ADR debut has effectively created a new benchmark for investors to assess the company’s valuation. According to data from the LSEG, shares of the chip giant closed 15.4% lower…
Its fall was so large that it lost more than US$37 billion in stock value, below US$1 trillion.
Attacks in the Middle East, inflation figures and the next reporting season: Investors are clearly holding back on the stock exchanges on Monday. A newcomer on Wall Street is clearly feeling this.
The shares of SK Hynix fell more than 15% in Seoul on Monday, recording its biggest fall in a single day in almost two decades, as South Korean investors made profits after the strong valuation of the shares, driven by the debut of the Korean chip manufacturer in Nasdaq last week.
SK Hynix shares plunge 15% to one-month low after blockbuster Nasdaq debut
SK Hynix shares fell 15% on 13 July, marking a record decline. The drop, driven by profit-taking after Nasdaq debut, weighed on South Korea's Kospi, which fell 9%. Market volatility raises questions on AI-driven valuations and sustainable returns amid uncertainty in earnings season.
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