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SK Hynix shares listed in the United States closed below their initial public offering price for the first time on Monday. The decline came less than three weeks after the South Korean memory chipmaker completed one of the largest US listings on record.
The American depositary receipts fell 7.47% to $143.02 on July 27. They traded as low as $139.01 during the session, below the $149 offering price set before the NASDAQ debut. The stock opened at $170 on its first trading day and later reached an intraday high of $194.80.
Its rapid reversal adds to a wider change in trading across newly listed companies, where strong debut demand has given way to tighter valuation checks and faster profit-taking activity.
SK Hynix raised about $26.5 billion through the sale of 177.9 million depositary shares. Each receipt represents one-tenth of a common share. Strong institutional demand supported the offering, which ranked as the second-largest US share sale after SpaceX.
However, the early rally faded as investors reduced exposure to semiconductor companies. Monday’s close placed the shares 4% below the IPO price and about 27% below the July 14 peak. Trading volume reached more than 50 million shares as selling accelerated during the session.
The decline also came before SK Hynix reported earnings on Wednesday. Investors will review demand for high-bandwidth memory, production plans and spending levels. The company supplies advanced memory products used with NVIDIA processors in AI servers.
Pressure extended across the semiconductor market. The Philadelphia Semiconductor Index fell 2.2% on Monday and reached its lowest closing level since May 19. The index has dropped more than 20% during July after strong gains earlier in the year.
NVIDIA, Micron and other chip companies also declined as investors questioned the pace of AI infrastructure spending. Concerns around ‘circular financing’ returned after several large technology agreements involved funding, loan support and equipment purchases among connected companies.
Meanwhile, Chinese memory producer ChangXin Memory Technologies surged 466% during its Shanghai debut. Its strong listing drew attention to rising competition in the memory market. Reports of new Chinese chipmaking equipment added pressure across Asian and US semiconductor shares.
SK Hynix joined SpaceX among large US listings trading below their offering prices. SpaceX closed at $113.50 on Monday, compared with its $135 IPO price. The stock had climbed above $225 shortly after its June listing.
Other recently listed companies have also lost early gains. Gas engine maker Innio traded below its IPO level as investors moved away from high-value new issues. The weaker performance has raised closer scrutiny of pricing across major technology offerings.
SK Hynix’s decline came despite a new partnership between NVIDIA and SK Group. The companies announced a planned investment exceeding $500 billion across AI data centers and next-generation memory. SK Telecom plans to develop an AI facility with capacity of up to two gigawatts.
The project could support long-term demand for SK Hynix memory products. Nevertheless, markets are assessing whether planned spending will match future demand. The company’s earnings report will provide updated figures on sales, margins, production and capital spending.
Also Read: Samsung Speeds Up Yongin AI Chip Fab as SK Hynix Faces Post-NASDAQ Sell-Off
