SK Hynix shares slumped on Monday as the sustainability of artificial-intelligence spending came back into focus.
The shifting sentiment placed pressure on the memory-chip maker's first full day of U.S. trading following a strong showing last week. SK Hynix's American deposit receipts, which trade under the ticker symbol SKHY, were down 7.9% at $154.75 on Monday.
In Seoul, shares closed 15% lower at 1.845 million won, or around $1,234. While there was no clear trigger for the drop, investors may have simply been taking profits after a 500% gain over the past year.
Moreover, South Korean trading is notoriously volatile. Retail investors have been piling into SK Hynix and other technology stocks for much of the year, with increasing use of aggressive tools such as leveraged exchange-traded funds. SK Hynix's huge U.S. listing may have provoked some selling as shareholders look to manage their risk.
SK Hynix's American depositary receipts soared 13% to $168.49 in the U.S. on Friday. The chip maker raised $26.5 billion in its market debut, beating out China's Alibaba to become the largest foreign listing in history.
The ADRs opened for trading under the temporary ticker symbol SKHYV, before dropping the "V" -- which indicates that shares are trading on a when-issued basis -- on Monday.
As 10 ADRs represent one share of SK Hynix, the price suggests American investors are valuing the company at $1,557.30 a share. ADRs can trade at a significant premium to the underlying shares due to the size of the U.S. investor base and obstacles to converting between the two instruments.
"There is a case that the U.S.-listed shares will initially trade at a premium because institutional investors, followed by retail investors, will be building their positions," said Hendi Susanto, portfolio manager at Gabelli Funds. "The debate between the optimists and pessimists will continue, which should create volatility. As a value investor, I welcome that volatility and short-term disruption because it can create attractive entry points."
Barron's has written positively about the ADRs, suggesting that they offer a cheaper way to play the memory-chip boom than U.S. company Micron Technology.
SK Hynix trades at a lower valuation than Micron, despite its larger business, and has close ties to major customer Nvidia. Micron shares were down 5.7% on Monday.
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 13, 2026 14:53 ET (18:53 GMT)
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