SK Hynix ADRs falls over 9% after record Nasdaq debut, in profit-booking slide
New Delhi, July 14
SK Hynix American Depositary Receipts closed declining 9.32 per cent as investors engaged in profit-taking following the South Korean memory chipmaker's historic overseas listing.
According to market data, the company's US-listed shares, trading under the ticker symbol SKHY, ended their latest session down USD 15.66 to settle at USD 152.35. The correction in New York also correlated with movements back in South Korea, where SK Hynix Inc listed on the Korea Exchange, slipped 0.76 per cent, declining by 14,000.00 won to stand at 1,831,000.00 won.
The retreat in the company's US-listed shares began on Monday after a strong Nasdaq debut, falling nearly 8 per cent in regular trading as investors booked profits after the South Korean memory chipmaker's record overseas listing.
The ADRs had debuted on Nasdaq on Friday after being priced at USD 149 apiece, opened at USD 170, and ended their first trading session at USD 168.01, a gain of about 12.8 per cent over the offer price.
Nasdaq data showed the ADR traded in a range of about USD 152.37 to USD 162.28 during Monday's session, after touching an intraday high above USD 170 on its debut.
The decline came after SK Hynix completed one of the largest overseas equity offerings by an Asian company, raising more than USD 26 billion through its ADR issue before making a strong Nasdaq debut. The company began regular-way trading on Nasdaq on Monday under the ticker SKHY, after initially trading on a when-issued basis under SKHYV following Friday's listing.
The move also came as investors turned cautious across AI-linked semiconductor stocks on Nasdaq following a sharp rally in the sector this year.
SK Hynix is the world's leading supplier of high-bandwidth memory (HBM) chips used in AI accelerators and counts Nvidia among its key customers. Its Nasdaq listing is expected to broaden access for global investors seeking exposure to AI memory-chip makers.
— ANI
Reader Comments
The AI hype is real, but so is volatility. SK Hynix's HBM chips are crucial for Nvidia, but a 26 billion dollar IPO was bound to attract profit-takers. I'd wait for the dust to settle before diving in.
This reminds me of the volatility we see in Indian markets after a big IPO. SK Hynix has strong fundamentals though - being Nvidia's key supplier gives them an edge. Hopefully long-term investors will see value here. 📉➡️📈
As an Indian investor who watches global tech stocks, this is a healthy correction after a massive 12.8% gain on debut. SK Hynix's ADR at $152 is still above the offer price of $149. Patience is key - AI demand isn't going away. 🇮🇳🤝🌍
Profit-booking after a record debut is standard market behaviour. The 26 billion raise shows strong institutional confidence. I'm more interested in their HBM3E chips and upcoming earnings. This dip could be a buying opportunity for risk-tolerant investors.
One must respect the market's wisdom - even great companies see pullbacks. SK Hynix's Nasdaq listing is a milestone for Asian tech, but valuations matter. Let's see if they can maintain their HBM dominance against Samsung and Micron. Patience, yaar! 😊
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.