SK Hynix stock was on course to give up some of its recent gains, as investors locked in profit following Tuesday's surge.
The South Korean memory-chip maker's American depositary receipts slid 9.1% to $176.3 in morning trading.
The ADRs were sliding even after SK Hynix's South Korean stock closed 8.8% higher on Wednesday.
The two assets haven't moved in tandem since the company's bumper U.S. listing on Friday. Korean stocks tend to swing wildly, with investors using leveraged exchange-traded funds to amplify volatility.
Profit-taking may have weighed on the ADRs on Wednesday. The stock soared 27% the previous session, after IBM CEO Arvind Krishna said customers had shifted their spending to storage and memory products.
Following that rally, the U.S. shares were trading at 6.2-times forward earnings -- a similar valuation to rival memory-chip maker Micron. Barron's has argued that one of the best reasons to own the ADRs was that they were cheaper than Micron stock.
Investors are also wondering how long SK Hynix's U.S. premium, which topped 50% on Tuesday, will last. The price gap could close once the Korea Securities Depositary allows mutual conversion between the local shares and ADRs, which is expected to happen on July 29.
Write to George Glover at george.glover@dowjones.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 15, 2026 08:27 ET (12:27 GMT)
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