Market Reaction in South Korea
SK Hynix Inc (ticker KS:000660) saw its domestic share price slide nearly 11%, closing at 1,942,000 won, which marked an over‑one‑month low. The sharp decline contributed to a more than 5% drop in the KOSPI index, prompting the Korea Exchange to briefly halt trading.
Nasdaq ADR Performance and Capital Raised
In contrast, the company’s American Depository Receipts (ADRs) on the Nasdaq surged approximately 13% on their debut on Friday. The offering generated about $26 billion in proceeds, underscoring strong investor appetite for the memory‑chip maker.
Q2 Operating Profit Forecast
Korea Investment & Securities Co. issued a forecast for the second‑quarter operating profit of 60.4 trillion won (≈ $40.3 billion), which is lower than the consensus estimate of 65 trillion won. The downgrade reflects expectations of a modest rise in average selling prices for high‑bandwidth memory (HBM) due to SK Hynix’s dominant market share.
HBM Pricing Outlook
Analysts anticipate that HBM price increases will be smaller in Q2 and that starting Q3, HBM prices are expected to rise in line with the broader market average, according to a ChosunBiz report.
Earnings Growth and AI Demand
Despite the share‑price dip, SK Hynix is still projected to record strong year‑on‑year earnings growth in Q2, with results slated for release later in July. The company has benefited from elevated memory prices driven by robust demand from the artificial‑intelligence sector, though questions remain about the sustainability of this AI‑fuelled earnings surge.
Additional Market Data
- KOSPI ticker movement: KS11‑8.95%
- SK Hynix domestic ticker movement: 000660‑15.37%
- ADR ticker movement: SKHY+12.76%