SK Hynix plunges after Nasdaq debut as memory chip euphoria cools - Reuters
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- SK Hynix raised $26.5 billion in its Nasdaq debut, marking the second-largest share sale in history and initially surging 13–17% on July 10
- SK Hynix ADRs tumbled the following day as South Korean shares fell, reversing early gains and signaling cooling demand for memory chip equities
- SK Hynix stock dropped amid renewed market fears about AI-driven valuations, despite strong underlying profit growth in the semiconductor sector
- Nasdaq listed SK Hynix ADRs as part of a major capital raise, drawing significant attention from global investors and impacting tech sector sentiment
Why it matters: SK Hynix secured a massive $26.5 billion from its U.S. listing, but the sharp next-day drop shows investors quickly reassessed AI-related risks, making it harder for high-flying chip firms to sustain valuations even with strong fundamentals. This reversal signals tighter scrutiny on tech pricing.
