SK Hynix tumbles in global chip rout days after record US IPO

SK Hynix, the South Korean memory chip giant that landed the largest-ever US listing by a foreign company just days ago, found itself caught in a punishing semiconductor rout on Thursday as Asian and US chip stocks extended a multi-day decline driven by doubts over the sustainability of the AI trade.

A Historic Listing Meets Market Reality

SK Hynix began trading on the Nasdaq ↗ 0.99% on July 10 after raising $26.5 billion by selling 177.9 million American depositary shares at $149 each. The listing surpassed Alibaba's ↘ 4.74% $25 billion IPO in 2014 to become the largest US debut by a foreign company. Shares surged nearly 13% on their first day of trading, closing around $168.finance.yahoo+4

But the euphoria proved short-lived. By Monday, July 13, SK Hynix's Seoul-listed shares plunged a record 15%, while its US-listed ADRs fell roughly 6% as investors locked in profits and a brokerage report warned the company's quarterly operating profit could miss estimates. The selloff deepened further this week, with shares in Seoul closing down 11.5% on Thursday after reversing an 8% rally the prior session.cnbc+2

Sector-Wide Contagion

The selling pressure was not confined to SK Hynix. Samsung Electronics dropped more than 8% in Seoul on Thursday, while the Kospi plunged over 6%, triggering yet another sidecar — its 37th of 2026. In the US, Micron Technology ↘ 2.22% sank 8% overnight, while Intel ↘ 1.02% lost more than 4%.beincrypto+2

The rout came even as Taiwan Semiconductor Manufacturing Company ↘ 1.20% reported 77% earnings growth, which failed to impress investors spooked by stretched valuations across the AI chip complex.reuters+1

What Comes Next

Despite the turbulence, SK Hynix commands roughly 57% of the high-bandwidth memory market essential to AI servers, with revenue up 198% and margins above 70%. The company has scheduled its Q2 2026 earnings call for July 29. How it navigates this volatility — having raised billions just as sentiment turned — will test whether the AI chip boom can sustain its record-setting pace or whether the market's appetite has finally reached its limits.stocksdownunder+1