SK Hynix Inc.'s (NASDAQ:SKHY) American depositary receipts (ADRs) closed below their IPO price for the first time Monday as investors continued to unwind positions in AI-related semiconductor stocks despite strong long-term demand for memory chips.
SK Hynix Falls Below IPO Price The South Korean chipmaker fell as much as 10% to $139.01 on Monday, dropping below its $149 IPO price for the first time since the company's $26.5 billion U.S. listing earlier this month.
The drop extended a sharp reversal for one of the biggest winners of the AI boom, with investors accelerating their exit from semiconductor stocks amid mounting concerns over AI infrastructure spending and future demand.
Read Also: Adam Schiff Revives AI Ads Act to Ban Deceptive Political Deepfakes: 'We Cannot Allow AI to Further Blur the Line Between…' China Fears Put SK Hynix at the Center of Memory Stock Rout SK Hynix accounted for roughly $95 billion of the more than $541 billion erased from six major memory-chip companies on Monday, making it one of the biggest contributors to a broader semiconductor selloff that wiped more than $1 trillion from U.S. stocks.
The rout followed a report by The Information that a state-backed Chinese manufacturer had entered mass production of domestically developed deep ultraviolet (DUV) lithography systems, fueling concerns that Chinese memory-chip makers could expand production using homegrown equipment.
