SK Hynix shares dived in South Korea on Monday with the sustainability of artificial-intelligence spending back in focus. That's likely to put pressure on the memory-chip maker's first day of trading in the U.S. under its official ticker after a blockbuster listing last week.
SK Hynix dropped 15% to 1.845 million won, or around $1,234, in Seoul. There was no obvious trigger for the drop but one reason could be South Korean investors looked to be taking some profit after a 500% gain in the past 12 months.
South Korean trading is notably volatile, as retail investors have been piling into SK Hynix and other technology stocks much of the year, with increasing use of aggressive tools such as leveraged exchange-traded funds (ETFs). SK Hynix's huge U.S. listing might have provoked some selling as shareholders look to manage their risk.
SK Hynix's American depositary receipts soared 13% to $168.49 on Friday, when the company raised $26.5 billion in its U.S. debut, the largest share sale by a non-U. S. company.
As 10 ADRs represent one share of SK Hynix, the closing price suggested American investors were valuing the company at $1,684.90 a share. Although 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 -- the drop in South Korean trading is likely to cause a hit to the ADRs as well.
"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.
SK Hynix's ADRs traded under a temporary "SKHYV" ticket on Friday but will revert to a permanent ticker "SKHY" on Monday.
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 5.3% in premarket trading 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 04:53 ET (08:53 GMT)
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