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Why SK Hynix Stock Drops Today After a 27% Surge
Updated July 15, 2026, 6:09 pm EDT / Original July 15, 2026, 8:27 am EDT
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About This Summary
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SK Hynix American depositary receipts fell on Wednesday as investors locked in profits.
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The decline followed a 27% surge on Tuesday after IBM CEO Arvind Krishna said customers shifted spending to storage and memory products.
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The price gap between local shares and ADRs could close once the Korea Securities Depositary allows mutual conversion, expected on July 29.
SKHY\ \ -9.00% stock gave up some of its recent gains, as investors locked in profit following Tuesday’s surge.
The South Korean memory-chip maker’s American depositary receipts slid 9% to $176,46 on Wednesday. The S&P 500
SPX\ \ +0.38% was 0.4% higher.
The ADRs fell even after SK Hynix’s South Korean stock closed 8.8% higher on Wednesday.
The two assets haven’t moved in tandem since the company’s bumper U.S. listing on Friday. Korean stocks tend to swing wildly, with investors using leveraged exchange-traded funds to amplify volatility.
Profit-taking may have weighed on the ADRs on Wednesday. The stock soared 27% the previous session, after IBM
IBM\ \ -2.70% CEO Arvind Krishna said customers had shifted their spending to storage and memory products.
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Following that rally, the U.S. shares were trading at 6.2-times forward earnings—a similar valuation to rival memory-chip maker Micron
MU\ \ -8.02%. Barron’s has argued that one of the best reasons to own the ADRs was that they were cheaper than Micron stock.
Investors are also wondering how long SK Hynix’s U.S. premium, which topped 50% on Tuesday, will last. The price gap could close once the Korea Securities Depositary allows mutual conversion between the local shares and ADRs, which is expected to happen on July 29External link.
Write to George Glover at george.glover@dowjones.comExternal link
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