After a notable 13% increase in its Nasdaq debut, SK Hynix experienced a significant decline in its share price in Seoul, attributed to profit-taking and concerns regarding the valuation of its U.S.-listed shares compared to its domestic stock.
Analysts, including Daniel Yoo from Yuanta Securities, highlighted the confusion surrounding memory demand and supply dynamics, noting that the recent debut has set a new valuation benchmark. The disparity between SK Hynix's U.S. and Korean listings has created a discount of over 20%, raising questions about fair pricing.
Yoo suggested that the sell-off may be a temporary correction, with expectations of a rebound as AI demand continues to grow.
Phillip Wool from Rayliant Global Advisors characterized the recent weakness as a portfolio rebalancing rather than a negative shift in the industry's outlook, emphasizing that the excitement around AI hardware remains intact and that memory suppliers like SK Hynix will continue to benefit from broader AI investments