{"slug": "memory-chip-stocks-down-again-today-why-sk-hynix-shares-are-tumbling-after-its", "title": "Memory chip stocks down again today: Why SK Hynix shares are tumbling after its record-breaking IPO", "summary": "Shares of memory chip companies, including SK Hynix, fell sharply on Monday amid investor concerns about the sustainability of the AI-driven boom. SK Hynix's U.S. depository shares dropped 8.9% after its record-breaking IPO last week, while Samsung and Micron also declined. Analysts cited high valuations and worries about cyclical demand for high-bandwidth memory used in AI servers.", "body_md": "Shares in memory chip companies slumped across U.S. markets Monday, in a further sign of investor concerns over how much road is left for the [AI](https://www.fastcompany.com/section/artificial-intelligence) stock market boom.\n\nSK Hynix’s American depository shares were down 8.9% by midday Monday, just days after its [blockbuster stock market debut](https://www.fastcompany.com/91571722/sk-hynix-stock-price-nasdaq-trading-start-time-skhy-ipo-update) last week, the largest ever U.S. IPO by a foreign company.\n\nThe chip giant was also the biggest faller in South Korea, plunging a record 15%, while tech giant Samsung also dropped 10.5%. The two firms dominate the country’s Kospi index, and the falls were so steep that they triggered a temporary stop in trading.\n\nNow, the selloff has carried over to the Nasdaq, where SK Hynix has its new secondary listing. Fellow [memory storage company Micron Technology](https://www.fastcompany.com/91519078/micron-sandisk-western-digital-stocks-down-memory-chips-why-falling) was down 4.8%; Sandisk fell 10.7%; and Western Digital was down 5.9% by midday Monday.\n\nInvestors piled into SK Hynix’s U.S. debut Friday, keen to get a piece of another company that has benefitted hugely from the AI infrastructure boom. The Korean group is the global leader in high-bandwidth memory, the type needed for the most powerful AI servers. The IPO raised $26.5 billion and was more than seven times oversubscribed.\n\nRevenue and profit have surged recently, amid an ongoing memory chip shortage driven by AI companies’ vast demand for data center buildouts. Operating profit jumped 405% year-over-year in the first quarter of 2026, while revenue surged 198%, SK Hynix [reported](https://urldefense.proofpoint.com/v2/url?u=https-3A__www.prnewswire.com_news-2Dreleases_sk-2Dhynix-2Dannounces-2D1q26-2Dfinancial-2Dresults-2D302750959.html&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=ENaMYc3HOxSul0zQVOO-4WLXdhIxkRN8Ge-IQEAnhoM&m=cmSziVhGjehVMfvLUZkn6JUfq0Thyb8txVy1eupkCocQYlrA5RtjS7GvZtSQItrA&s=hpM1p7HNfNaK_XIto4SJCD55Bxa7ZZJzA5vCHbKewUY&e=) in April.\n\nBut analysts are concerned about how fast shares have gone into reverse. Semiconductor stocks have been especially volatile in recent weeks, following a [red-hot period earlier this year](https://www.fastcompany.com/91564975/memory-chip-stocks-today-mu-sndk-wdc-stk-rise-micron-earnings) when many of them rallied dramatically.\n\n“It was always going to be a volatile ride after the company’s American depositary receipts began trading at such a heady valuation,” wrote Susannah Streeter, chief market strategist at Wealth Club, in a note. “While companies right now can’t get enough of SK Hynix’s products, there are concerns that a lot of this demand has been front-loaded and will ultimately prove cyclical.”\n\nSK Hynix appears to have been hurt by a report from Korea Investment & Securities, which projected its operating profit for the latest quarter may trail analyst forecasts by 8%. The brokerage pointed to its reliance on HBM as a share of revenue, saying prices are not rising as fast in that area as for conventional chips, [reported](https://urldefense.proofpoint.com/v2/url?u=https-3A__www.bloomberg.com_news_articles_2026-2D07-2D13_sk-2Dhynix-2Dshares-2Ddrop-2Din-2Dseoul-2Dafter-2Dmuch-2Dhyped-2Dus-2Dtrading-2Ddebut-3Fembedded-2Dcheckout-3Dtrue&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=ENaMYc3HOxSul0zQVOO-4WLXdhIxkRN8Ge-IQEAnhoM&m=cmSziVhGjehVMfvLUZkn6JUfq0Thyb8txVy1eupkCocQYlrA5RtjS7GvZtSQItrA&s=tWQZricPCyqIhUt0hlC2xdDYu_YLQq24F6kex8W_vJw&e=) Bloomberg.\n\nOther analysts suggested the volatility was to do with what the company’s fair value should be.\n\n“Everybody’s really confused about what’s going to happen to the memory demand and where the fair price is,” Daniel Yoo, global strategist at Yuanta Securities, [told](https://urldefense.proofpoint.com/v2/url?u=https-3A__www.cnbc.com_2026_07_13_sk-2Dhynix-2Dshares-2Dfall-2Dafter-2Dstellar-2Dnasdaq-2Ddebut.html&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=ENaMYc3HOxSul0zQVOO-4WLXdhIxkRN8Ge-IQEAnhoM&m=cmSziVhGjehVMfvLUZkn6JUfq0Thyb8txVy1eupkCocQYlrA5RtjS7GvZtSQItrA&s=-FnEB9YQNO9SHZkZ2hzxiy9bsDmuc7FbGNgEAfVfh1M&e=) CNBC. “It’s all about how much demand is there versus how much supply is going to come in . . . [and] what kind of multiple you will be getting.”", "url": "https://wpnews.pro/news/memory-chip-stocks-down-again-today-why-sk-hynix-shares-are-tumbling-after-its", "canonical_source": "https://www.fastcompany.com/91572597/sk-hynix-micron-sandisk-skhy-mu-sndk-stock-memory-chip-shares-down-today", "published_at": "2026-07-13 17:40:00+00:00", "updated_at": "2026-07-13 18:18:09.191638+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-chips"], "entities": ["SK Hynix", "Samsung", "Micron Technology", "Sandisk", "Western Digital", "Korea Investment & Securities", "Yuanta Securities", "Wealth Club"], "alternates": {"html": "https://wpnews.pro/news/memory-chip-stocks-down-again-today-why-sk-hynix-shares-are-tumbling-after-its", "markdown": "https://wpnews.pro/news/memory-chip-stocks-down-again-today-why-sk-hynix-shares-are-tumbling-after-its.md", "text": "https://wpnews.pro/news/memory-chip-stocks-down-again-today-why-sk-hynix-shares-are-tumbling-after-its.txt", "jsonld": "https://wpnews.pro/news/memory-chip-stocks-down-again-today-why-sk-hynix-shares-are-tumbling-after-its.jsonld"}}