SK Hynix shares tumble after record Nasdaq debut sparks profit-taking

SK Hynix suffered its biggest one-day share price decline on record on Monday, as investors locked in gains following the memory chip giant's blockbuster Nasdaq debut.

The South Korean chipmaker's shares fell 15.4% on the Korea Exchange, just one trading day after its US listing raised $26.5 billion and surpassed Alibaba's long-standing IPO record.

Profit-taking follows blockbuster US listing

SK Hynix's American depositary receipts (ADRs) debuted on the Nasdaq on Friday, opening about 14% above their $149 reference price before closing the session 12.8% higher.

Despite the strong US debut, investors took profits in Seoul after months of gains, sending the stock to its steepest daily loss on record.

Rival Samsung Electronics also dropped more than 10%, weighing heavily on South Korea's benchmark Kospi index.

Market sell-off hits Asian chip stocks

The sharp declines in SK Hynix and Samsung triggered a circuit breaker on the Kospi, halting trading for 20 minutes before the index eventually closed nearly 9% lower.

The broader market retreat came amid renewed geopolitical tensions in the Middle East and growing concerns that the AI-driven rally in technology stocks had outpaced company fundamentals.

Japan's Nikkei 225 also declined, while memory chip maker Kioxia fell nearly 13%.

Analysts remain positive despite pullback

Despite Monday's sell-off, analysts remain broadly optimistic about SK Hynix's longer-term outlook, with the Korea-listed shares still having nearly doubled this year.

Morningstar said the company's ADRs appear fairly valued but expects the memory chip cycle to normalise over time, limiting further upside.

The latest decline also widened the valuation gap between SK Hynix's US-listed ADRs and its South Korean shares, with analysts noting that dual-listed companies often command higher valuations in US markets due to stronger liquidity and broader investor access.