Market Reaction in Seoul
On Monday, SK Hynix shares fell sharply, sliding nearly 11% to 1,942,000 won, which represented a one‑month low for the stock. The decline contributed to a more than 5% drop in the KOSPI index, prompting the Korea Exchange to briefly halt trading amid the deep losses across Asian chipmakers.
Nasdaq ADR Debut
Despite the domestic sell‑off, the company’s American Depository Receipts (ADRs) posted a strong performance on the Nasdaq, surging approximately 13% on their debut on Friday. The offering raised about $26 billion, underscoring investor enthusiasm for the memory‑chip maker’s exposure to the artificial‑intelligence‑driven market.
Earnings Forecast and Consensus Gap
South Korean media cited a report from Korea Investment & Securities Co. that projected SK Hynix’s second‑quarter operating profit at 60.4 trillion won (approximately $40.3 billion), which falls short of the consensus estimate of 65 trillion won. The brokerage noted that the firm is likely to record a smaller increase in the average selling price (ASP) of its high‑bandwidth memory (HBM) products for the quarter, given its larger market share relative to competitors.
HBM Pricing Outlook
A ChosunBiz report indicated that while HBM ASPs are expected to see only modest growth in Q2, they should align with the broader market average and begin to rise from the third quarter onward.
Outlook for Q2 Earnings
SK Hynix is still anticipated to deliver strong year‑on‑year growth in its second‑quarter earnings, which are scheduled for release later in July. The company has benefited significantly from rising memory prices, driven by heightened demand from the artificial‑intelligence sector, though questions remain about the sustainability of this earnings surge at current levels.