SK hynix ADR drops more than 9% on second day of trading

SK hynix’s Nasdaq-listed ADR fell as valuation concerns spread across memory chip stocks after an AI-driven rally.

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SK Group Chairman Chey Tae-won, center, and SK hynix executives attend the chip company's opening bell ceremony at the Nasdaq market on July 10.

SK hynix's American depositary receipts (ADRs) plunged more than 9 percent on its second day on the Nasdaq.

The ADRs closed at $152.35 on Monday, down 9.32 percent from the previous trading session.

The decline erased much of the 13.1 percent gain recorded on the stock's trading debut last Friday, leaving the ADRs trading only slightly above their initial public offering price of $149.

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The sharp decline in SK hynix shares in the Korean stock market also appeared to weigh on the ADRs. The company's shares on the Kospi closed at 1.845 million won ($1,230), down 15.37 percent from the previous trading day.

The latest sell-off is widely seen to reflect growing valuation concerns and a reset in investor expectations across the memory semiconductor sector, which had surged on optimism surrounding the AI boom.

Shares of other memory chip makers also fell on the New York Stock Exchange. Micron Technology fell 4.4 percent on Monday and Western Digital lost 4.6 percent.

“SK hynix is trading through the hangover after the dopamine rush, as the excitement that powered the rally gives way to a much harsher reset in expectations," Hebe Chen, a market analyst at Vantage Global Prime, told Bloomberg on Monday.


BY JEONG HYE-JEONG [lee.taehee2@joongang.co.kr]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

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