Just days before it is set to begin trading on the Nasdaq under what was initially estimated as a $29 billion secondary listing, SK Hynix finds itself caught in a severe pullback on its home exchange. The South Korean memory chip maker saw its stock fall 6.06% on Tuesday to 2,201,000 won, bringing its weekly loss to nearly 17% and dragging the broader KOSPI index with it. The slide has carved 26.31% off the record high of 2,987,000 won reached on June 25, raising questions about how much appetite remains for AI-linked equities at such elevated valuations.
Yet the sheer scale of the year-to-date advance — still 225.11% — underscores the extremes at play. The stock has more than quadrupled from its 52-week low of 491,500 won, which was recorded in October 2025. Over the past 30 trading sessions, volatility has surged to 115.71%, a reading that reflects the nervousness gripping the market as the company’s US debut approaches.
A $28 Billion Deal Buffeted by Market Turbulence
SK Hynix initially hoped to raise roughly $29 billion from its American depositary receipts offering. But the recent tech rout has trimmed expectations. The company plans to issue ADRs representing approximately 17.79 million common shares, which at Friday’s closing price in Seoul equates to a deal size of around $28 billion. Marketing for the listing began on Monday, and the final price will be set before trading starts on July 10.
Despite the volatility, several market participants see the listing as a structural positive. “Even if market volatility has been quite high recently, I expect relatively robust demand for SK Hynix shares,” said Albert Yong, managing partner at Petra Capital Management. Dave Mazza, CEO of Roundhill Investments, which runs a DRAM-focused ETF, argued that the Nasdaq debut eliminates what he called an “access discount” rather than a quality discount. “SK Hynix was one of the most important companies in the world that most US institutions could hardly hold until now,” he said. Steve Sosnick, chief strategist at Interactive Brokers, added that the listing primarily benefits smaller, “capital-hungry” investors who want direct exposure to the stock.
Wall Street Warns of Extreme Speculation
The abrupt correction has revived warnings from strategists who see parallels with past bubbles. Bank of America reiterated its year-end S&P 500 target of 7,100 points — a 5% decline from last week’s close — citing “extreme speculation” in richly valued stocks. The bank noted that similar price surges have historically been followed by sharp valuation reversals.
Should investors sell immediately? Or is it worth buying SK Hynix?
Capital Economics economist James Reilly went further, describing the recent swings in SK Hynix as “evidence of excessive exuberance.” His team pointed out that comparable volatility has only occurred during genuine bear markets, such as the Asian financial crisis, the dot-com bust, and the 2008 global financial crisis. Deutsche Bank, in a chartbook published in early July, highlighted that Samsung and SK Hynix had tripled the KOSPI index in 12 months after 17 years of stagnation, and that even after the latest drop, their combined market capitalization remains 16 times that of the third-largest index constituent.
The Fundamental Picture Remains Intact, but Risks Loom
SK Hynix remains the primary supplier of high-bandwidth memory to Nvidia and counts Google among its customers. Analysts also expect the company to be added to the Philadelphia Semiconductor Index, which would trigger passive inflows and help close the valuation gap with smaller US rival Micron.
Yet the company’s decision to build two new fabrication plants in South Korea — part of a push to meet AI-driven demand — carries the risk of creating oversupply in a notoriously cyclical industry. That risk was underscored in June when SK Hynix announced it would scale back its AI memory business, triggering one of the heaviest single-day losses in KOSPI history.
Technicals Point to a Market Without a Clear Direction
The stock currently trades 5.4% above its 50-day moving average but far below its June peak. The relative strength index stands at 46, indicating a neutral zone with no strong momentum in either direction. With the July 10 Nasdaq listing now days away and a 30-day volatility reading of 115.71%, the coming sessions will test whether the AI rally can regain its footing — or whether the correction has further to run.
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