SK Hynix shares plunged more than 15% on Monday, marking their biggest one-day drop in nearly 20 years as investors rushed to lock in profits after the chipmaker’s strong Nasdaq debut last week.
The semiconductor company’s US-listed shares also fell nearly 8% after soaring 12% last Friday.
The sharp decline dragged down South Korea’s stock market, with the Kospi index falling 9% and triggering a temporary trading halt.
Rivals like Samsung Electronics and several US chipmakers, including Micron, SanDisk and Western Digital, also posted losses.
Despite the sell-off, analysts say demand for AI memory chips remains strong. However, some investors worry that massive chip factory investments could create excess supply by 2027. SK Hynix disagrees, saying demand will continue to outpace production for years as AI technology expands.