SK Hynix Inc. shares experienced a notable decline in Seoul on Monday, following its highly anticipated US trading debut. The stock fell 10% on the Korea Exchange, negatively impacting the benchmark Kospi. This decline came after its American Depositary Receipts (ADRs) had initially climbed 13% on Friday, driven by strong follow-on demand after what was described as the largest first-time share sale by a foreign company in history.
SK Hynix's US-listed shares also slipped nearly 8%, as the initial enthusiasm surrounding its Nasdaq debut subsided. This profit-taking in AI-linked chip stocks triggered broader weakness across global semiconductor markets, with significant losses observed in both Seoul and the US, raising concerns about current valuations and the long-term sustainability of AI-driven demand.
Verdice News reported that SK Hynix's US listing raised $26.5 billion, making it the largest-ever US IPO by a foreign company. The offering was reportedly oversubscribed by more than seven times. However, by midday Monday, its American depositary shares had fallen 8.9%, and in Seoul, SK Hynix shares dropped a record 15%, leading to a temporary trading halt for both SK Hynix and Samsung. This downturn also affected other chipmakers like Micron, Sandisk, and Western Digital, highlighting a potential valuation problem despite strong demand for SK Hynix's high-bandwidth memory, a critical component for AI servers.
