SK Hynix sinks after Nasdaq debut amid profit-taking, easing earnings optimism
SK Hynix Shares Drop Following U.S. Listing and Market Reactions
Nasdaq Debut and Initial Performance
SEOUL, July 13 (Reuters) - SK Hynix shares dropped as much as 8.2% in early Seoul trade on Monday as investors booked profit, after a high-profile U.S. listing saw the world's leading AI memory chipmaker surge 12.8% in its Nasdaq debut on Friday.
The South Korean firm raised over $26 billion selling American Depositary Receipts priced $149 each. The ADRs opened 14% above the offer price at $170 before ending their first trading day with a 12.8% gain.
Impact on Local and Global Markets
In Seoul on Monday, the benchmark KOSPI was trading down 2.8% as of 0057 GMT.
Analyst Insights and Investor Sentiment
Profit-Taking and Earnings Concerns
Ryu Young-ho, a senior analyst at NH Investment & Securities, said investors were profit-taking after the conclusion of the U.S. listing, while sentiment also suffered from caution with regards to SK Hynix's second-quarter earnings.
Expectations for HBM4 Chip Shipments
He said investors had expected shipments of SK Hynix's HBM4 chips to increase from the second quarter, but that the increase does not appear to have materialised at scale.
Moderated Earnings Expectations
Ryu also said investors had moderated earnings expectations because SK Hynix, with its greater exposure to the HBM market than cross-town rival Samsung Electronics, was set to benefit less from a recent rise in prices for conventional DRAM chips.
Market Share and Industry Context
High Bandwidth Memory Market Leadership
SK Hynix led the market for high bandwidth memory chips with a 58% revenue share in the first quarter, whereas Samsung and U.S. competitor Micron Technology each held 21%, Counterpoint Research data showed.
Role of HBM Chips in AI Systems
HBM chips are primarily used in artificial intelligence systems for customers such as Nvidia and Alphabet's Google.
(Reporting by Heekyong Yang; Editing by Jacqueline Wong and Christopher Cushing)
