SK Hynix shares drop after Nasdaq debut as AI memory stocks cool
Sharp decline in AI-linked memory stocks disappoints investors following initial euphoria.
1Post-Nasdaq debut decline
SK Hynix's US-listed shares fell nearly 8% on Monday, giving up part of Friday's strong debut gains. The South Korean chipmaker's drop came as investors took profits after a sharp rally in AI-linked memory stocks, signaling a market correction in the semiconductor sector.
2Steeper fall in Seoul
SK Hynix shares tumbled over 15% in Seoul, marking their biggest one-day drop in nearly two decades. The decline, combined with losses in Samsung Electronics, dragged South Korea's Kospi index down 9%, triggering a 20-minute trading halt amid heightened market volatility.
3US sector-wide impact
The weakness spread to US memory and storage stocks, with Micron Technology falling 6.4%, SanDisk dropping 8.4%, and Western Digital declining 6.8%. The Philadelphia SE Semiconductor Index lost 3.6%, reflecting broader concerns about the sustainability of the AI investment boom.
4Prime AI boom beneficiary
SK Hynix has been a major global beneficiary of the AI revolution due to its leadership in high-bandwidth memory chips used in AI data centers. The company's Korean shares had more than tripled this year before its successful $26 billion US listing last week.
5Supply-demand balance concerns
Investors are questioning whether the AI capital spending cycle can maintain its momentum. South Korea's ambitious chip investment plans have raised fears that today's tight memory supply could eventually lead to oversupply, though SK Hynix's CEO predicts severe shortages by 2027.
6Increased volatility effects
SK Hynix's volatility has surged this year as global investors chase AI exposure. A leveraged Hong Kong ETF tracking SK Hynix with 2x daily returns plunged over 33% on Monday, its steepest drop since October listing, highlighting the risks in AI-related investments.
Original article: Economic Times — SK Hynix hisseleri Nasdaq çıkışının ardından değer kaybetti