Shares of SK Hynix plunged in Seoul, closing 15.4 percent lower and recording the largest one-day fall in the company’s history, according to data from LSEG.
The drop followed a strong U.S. market debut when the South Korean memory-chip maker jumped 13 percent on Nasdaq, prompting investors to lock in gains and reassess valuation metrics between the two listings.
Market participants said the recent move reflected profit taking and uncertainty about future memory demand for artificial intelligence workloads, rather than a clear change in industry fundamentals.
Daniel Yoo, global strategist at Yuanta Securities, said the ADR listing effectively created a new benchmark for valuing the company and left investors unsure how to price the shares relative to the Korean listing.
Yoo pointed to a wider pricing gap than peers, noting Taiwan Semiconductor Manufacturing Co’s U.S.-listed ADRs typically trade at about a 13 to 14 percent premium to its domestic shares. He said SK Hynix now shows a discount rate of more than 20 percent between its U.S. and Korean listings.
Yoo also attributed part of the selling pressure to the mechanics of the offering, describing it as additional share issuance that increased the supply of stock available to investors. He said the market is taking the move as a domestic correction.
Market Reaction And Outlook
Analysts and fund managers described the sell-off largely as portfolio rebalancing and risk management after outsized gains, rather than a reassessment of demand for AI hardware.
Phillip Wool, chief research officer at Rayliant Global Advisors, said the weakness looked like prudent sizing down of large positions and did not signal reduced enthusiasm for AI hardware. He said the selling does not imply a deterioration in the industry outlook.
Wool added that AI investment is broadening beyond semiconductors, a trend that should continue to benefit memory suppliers such as SK Hynix. He framed the movement as part of a wider reshaping of investor exposure.
Yoo warned of near-term volatility but predicted the pullback would likely prove temporary. He said structural AI demand should continue to outpace supply and that shares will probably move "in the right direction" over the next six to 12 months.
Investors will now watch how supply, demand and cross-listing valuation gaps evolve, and whether the recent volatility marks a brief correction or a longer re-rating of the stock.
