SK Hynix Drops 10% in Seoul After 13% Nasdaq Debut
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- SK Hynix shares tumbled more than 10% in Seoul on Monday after jumping 13% on its Nasdaq debut Friday, with investors locking in profits and weighing whether AI memory chip demand justifies the stock's run.
- Daniel Yoo of Yuanta Securities said investors are "confused" about memory demand and fair pricing, noting SK Hynix's U.S.-listed shares now trade at more than a 20% discount to its Korean shares — an inversion of the 13% to 14% premium that TSMC's U.S. ADRs command over its domestic stock.
- Yoo attributed much of the selling to the mechanics of the offering itself, calling it "additional share issuance" that increased supply and characterizing the move as "a correctional period for SK Hynix domestically."
- Yoo expected the pullback to prove temporary, saying shares will likely move "in the right direction" over the next six to 12 months as structural AI demand continues to outpace supply.
- Phillip Wool of Rayliant Global Advisors described the weakness as "mostly risk management" — portfolio rebalancing after investors had built "outsized positions" in South Korean and Taiwanese AI chipmakers on their strong gains.
- Wool said AI investment is broadening beyond semiconductors, which should continue to benefit memory suppliers like SK Hynix, and that the selling "doesn't really speak to any sort of reduction in the excitement about AI hardware."
Why it matters: The Nasdaq listing created an unusual 20%+ discount — not premium — for SK Hynix's U.S. shares versus its Korean stock, a reversal of the pattern set by TSMC, giving investors a new valuation reference point at a time when AI memory demand is structurally outpacing supply. Both analysts in this piece frame the Seoul sell-off as technical, not fundamental, suggesting the 10% slide reflects share-supply mechanics and rebalancing rather than any cooling of the AI hardware thesis.
