SK Hynix Shares Drop in Seoul After Much-Hyped US Trading Debut

SK Hynix Inc. shares fell 10% in Seoul on Monday after its American depositary receipts climbed 13% in the company's US trading debut, the largest first-time share sale by a foreign company in history. The decline reflects profit-taking and arbitrage unwinding as the New York momentum was already priced in, according to analysts. The $26.5 billion offering was seen as a test of demand for AI-related stocks, with SK Hynix being a key supplier of high-bandwidth memory for Nvidia Corp.'s AI processors.

Bloomberg -- SK Hynix Inc. shares declined in Seoul on Monday after the memory chipmaker's highly anticipated US trading debut. Most Read from Bloomberg - Hormuz Route Open Despite Iran Declaration, Maritime Group Says https://www.bloomberg.com/news/articles/2026-07-12/hormuz-route-open-despite-iran-declaration-maritime-group-says?utm campaign=bn&utm medium=distro&utm source=yahooUS - OpenAI Engineer's 'LOL' Moment Set Stage for Legal Fight With Apple https://www.bloomberg.com/news/articles/2026-07-11/openai-engineer-s-lol-moment-set-stage-for-legal-fight-with-apple?utm campaign=bn&utm medium=distro&utm source=yahooUS - US Launches Fresh Iran Strikes as Tehran Declares Hormuz Closed https://www.bloomberg.com/news/articles/2026-07-11/iran-declares-strait-of-hormuz-closed-until-further-notice?utm campaign=bn&utm medium=distro&utm source=yahooUS The stock fell 10% on Korea Exchange, weighing on the benchmark Kospi. That came after its American depositary receipts climbed 13% Friday, on follow-on demand following the largest first-time share sale by a foreign company in history. The New York momentum is already priced in and the stock may face heavy intraday profit-taking and arbitrage unwinding, said Jason Minsang Kam, head of active equity management at Kyobo Life Insurance Co. in Seoul. The company's $26.5 billion US offering was closely watched as a test of demand for overseas offerings as well as for the longevity of the artificial intelligence rally. SK Hynix has gained attention among global investors for its key position as a supplier of high-bandwidth memory to work with Nvidia Corp.'s AI processors. Even amid recent concerns over stretched AI valuations and high spending levels, the deal was more than seven times oversubscribed, Bloomberg News reported. The US listing closed Friday at a premium of roughly 15% to the Seoul-listed shares, Bloomberg-compiled data shows. The company's South Korean shares have skyrocketed more than 25-fold since the end of 2022 as the AI boom has driven up prices of all kinds of memory chips, driving record profits. The stock's ascent has gotten a push from a retail frenzy and surge in leverage that has made it susceptible to wild swings. Expectations have reached levels that are getting harder to beat. A report from Korea Investment & Securities on Monday projects SK Hynix's operating profit for the latest quarter may trail consensus by 8% due to the company's large share of revenue from HBM, where prices are rising more slowly than for conventional chips. Most Read from Bloomberg Businessweek - At 17, She Sued Meta and Google, and Won. Now She's Ready to Tell Her Story https://www.bloomberg.com/news/features/2026-07-03/google-and-meta-lost-a-landmark-trial-to-kaley-but-kept-her-as-a-user?utm campaign=bw&utm medium=distro&utm source=yahooUS - The Shattering of the Middle East's Most Unlikely Friendship https://www.bloomberg.com/news/features/2026-07-10/israel-palestine-conflict-shatters-unlikely-friendship-that-bridged-borders?utm campaign=bw&utm medium=distro&utm source=yahooUS - World Cup Panini Sticker Book Fans Brace for End of a 60-Year Tradition https://www.bloomberg.com/news/articles/2026-07-10/fanatics-panini-fight-threatens-world-cup-sticker-books?utm campaign=bw&utm medium=distro&utm source=yahooUS ©2026 Bloomberg L.P.