Memory chip giant SK Hynix plunged more in South Korea on Monday, just one trading day after its blockbuster Nasdaq debut.
SK Hynix's Nasdaq listing euphoria faded fast as shares tumbled 15.4% in South Korea.
The South Korean memory chip maker raised $26.5 billion in its US offering on Friday.
Analysts remain constructive but some see limited upside from current levels.
Shares listed on the Korea Exchange closed 15.4% lower — the stock's steepest decline on record — as investors locked in profits following a months-long rally and the company's closely watched US ADR listing. The event raised $26.5 billion — topping Alibaba's IPO more than a decade ago.
SK Hynix's American depositary receipts began trading on the Nasdaq on Friday, opening at $170 — about 14% above the $149 reference price — before ending their debut session up 12.8%.
Meanwhile, rival chipmaker Samsung Electronics lost over 10%.
Losses in the two index heavyweights sent the benchmark Kospi index sharply lower, triggering a 20-minute trading halt after a circuit breaker was activated for the seventh time this year. The index later closed nearly 9% lower.
Monday's sell-off also came as Asian markets broadly retreated amid renewed tensions in the Middle East and concerns about whether the AI-driven rally had outpaced fundamentals.
In Japan, the Nikkei 225 fell about 2% while hot memory chip stock Kioxia slumped nearly 13%.
All three major US stock futures were lower early on Monday with Nasdaq futures trading 1.3% lower.
Despite the sharp pullback, analysts remain broadly constructive on SK Hynix. The company's Korea-listed stock has nearly doubled this year.
Morningstar values the company's ADRs at $160 and its Korea-listed shares at 2.4 million won each, implying the stock is fairly valued.
"The current memory upcycle is tracking substantially stronger than expected, but our base case continues to assume normalization in cycle dynamics, limiting upside at current levels," Morningstar analyst Lorraine Tan wrote in a note on Friday.
SK Hynix's stock rout in South Korea on Monday means that its ADR in the US is now trading at about a 37% premium — a valuation gap analysts are watching closely.
"Companies with both US and home-market listings often trade at a premium in the US, benefiting from broader investor access, deeper liquidity and stronger valuation support, as seen with TSMC," wrote James Ooi, a market Strategist at Tiger Brokers, on Monday.
This article was written by Huileng Tan from Business Insider and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.