SK Hynix stock fell on Wednesday after the South Korean memory chip maker denied a report that it would acquire an Intel plant. Investors suffering from whiplash in its stock price likely have a bigger worry: Alphabet earnings.
SK Hynix's American Depositary Receipts (ADRs), essentially its US-listed stock, fell 6.6% in Wednesday's premarket trading after a 13.8% jump on Tuesday which came amid a wider rally in chip names. The company's Seoul-listed stock closed down 0.3% on Wednesday after jumping as much as 9% at one point.
Investors were reacting to a denial from the chip maker that it was in talks to acquire Intel's under-construction fabrication campus in Ohio, as reported by Korea's JooAng Daily.
In a Korean stock exchange filing on Wednesday, SK Hynix said it "has not pursued or decided to acquire Intel's Ohio site," but it was "reviewing various investment and acquisition opportunities."
Korean investors in SK Hynix are well acquainted with the company's rollercoaster stock price, which has gained more than 140% over the last half year but fallen 37% in the past month. SK Hynix has only eked out a 2% gain since listing its ADRs in New York earlier this month and kicking off the wild ride for American investors.
The next stage in the stock's saga could come in the day ahead with Alphabet reporting earnings after the bell.
Google will be closely watched for a forecast on artificial intelligence spending that matters for memory chip makers, with the earnings coming amid persistent concerns -- including from SK Hynix itself -- that chip prices are unsustainably high.
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