SK Hynix shares plunge over 8% in South Korea, profit-taking follows strong ADR market debut

Odaily News SK Hynix shares fell as much as 8.2% in early trading on the Seoul stock market on Monday as investors took profits. The stock had surged 12.8% on its first day of trading on the Nasdaq last Friday. NH Investment & Securities senior analyst Ryu Young-ho said that investors are taking profits after SK Hynix completed its U.S. listing, while market sentiment has also been affected by cautious expectations for the company's second-quarter earnings.

He noted that investors had initially expected shipments of SK Hynix's HBM4 chips to increase starting in the second quarter, but this growth does not appear to have materialized on a large scale. Ryu also said that investors have lowered their earnings forecasts, as SK Hynix has higher exposure to the HBM market compared to rival Samsung Electronics, and is therefore expected to benefit less from the recent rally in DRAM chip prices. (Jin Shi)