SK Hynix's American Depositary Receipts (ADR) fell more than 9% on their second day of trading, giving back most of the gains from the previous day and dropping to near the initial offering price.
On July 13, local time, SK Hynix ADR closed at $151.93, down 9.57% from the previous trading day. This price is about 2% above the initial offering price of $149.
On the first day of trading, July 10, SK Hynix ADR had surged 12.8%, closing at $168.01. However, it quickly surrendered a significant portion of those gains.
The sharp decline seen in the domestic market also impacted the U.S. market. On the same day, SK Hynix's main stock fell 15.37% to 1,845,000 won.
In the New York Stock Exchange, shares of Micron and Western Digital also dropped by more than 4%, reflecting a broader weakness in memory and storage-related stocks.
Market analysts suggest that profit-taking has emerged among memory semiconductor stocks, which had previously surged on expectations of increased investment in artificial intelligence (AI). Concerns over high stock prices and adjustments in earnings expectations are also seen as factors contributing to the decline.
Hebei Chen, a market analyst at Vantage Global Prime, stated, "SK Hynix is experiencing a cooling off from its rapid rise, and the market's expectations are being recalibrated."
* This article has been translated by AI.
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