Why SK Hynix shares tumbled after a blockbuster Nasdaq debut

SK Hynix made history with the largest-ever U.S. listing by a foreign company, raising $26.5 billion through its American Depositary Receipts (ADRs). The ADRs were priced at $149, opened about 14% higher, and ended their Nasdaq debut up nearly 13%, reflecting strong investor enthusiasm for AI-related semiconductor stocks. (Sources: CNBC, Business Insider, Reuters)

Despite the stellar U.S. debut, SK Hynix shares fell sharply in Seoul on Monday, dropping as much as 8% during trading. Investors booked profits after the recent rally, while broader weakness across Asian technology stocks added to the selling pressure.

The decline was also driven by concerns that shipments of the company's next-generation HBM4 (High Bandwidth Memory) chips may have fallen short of lofty second-quarter expectations. Investors are now closely watching the company's upcoming earnings for clarity on AI memory demand and production trends.

SK Hynix continues to dominate the AI memory market, supplying advanced HBM chips used in AI servers by customers including Nvidia. The company held the largest share of the global HBM market in the first quarter, reinforcing its position as a key beneficiary of the AI boom despite the recent volatility.

Analysts said Monday's decline reflected profit-taking rather than a shift in the company's long-term outlook. The capital raised from the Nasdaq listing is expected to support the expansion of AI chip production, while investors continue to view SK Hynix as one of the biggest beneficiaries of rising demand for high-bandwidth memory used in artificial intelligence.