On July 15, SK Hynix ADR declined 3.03% in after-hours trading to $171.7/share, with turnover of $268 million. The after-hours drop extends the regular session selloff of over 9%, as the stock continues to retrace its massive 27% single-day rally from the prior session.
The ADR premium relative to its Seoul-listed shares has narrowed sharply from 51% to approximately 26%, reflecting rapid valuation compression. The stock had surged to $193.92 on July 14 as newly launched options stoked speculative demand and short-dated call options attracted heavy retail inflows, with approximately 33,000 contracts traded on the first day. However, the structural premium driven by conversion restrictions between Korean shares and ADRs appears insufficient to sustain the extreme gap, triggering sustained profit-taking.
SK Hynix listed its ADR on Nasdaq just days ago, raising $26.5 billion in the largest-ever foreign IPO in the US. The company is the world's leading HBM memory chipmaker and a key supplier to NVIDIA's AI ecosystem. It is scheduled to report second-quarter earnings on July 29.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
