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▲ SK Hynix, Bear Market/AI Generated Image ©
As SK Hynix plummeted below its listing reference price less than three weeks after its US stock market debut, warnings emerged that the enthusiasm for AI semiconductor investment is rapidly cooling.
According to crypto media outlet Watcher.Guru on July 29 (local time), SK Hynix entered the Nasdaq market on the 10th via American Depositary Receipts (ADR) and began trading at $149 per share. However, on the 27th, it fell to $139.01 during trading before closing at $143, about 4% below its listing reference price. SpaceX, which listed at $150, also fell to $113, trading below its IPO price.
SK Hynix's stock price rose to $194 on the 14th but later fell by about 26%, giving back most of its initial gains. A strong correction also occurred across the broader semiconductor sector. Micron Technology plummeted 21% and SanDisk plunged 37% in the past month. This is the result of concentrated profit-taking and selling pressure, especially on stocks that had risen rapidly on the back of the AI boom.
The AI and semiconductor industries are evaluated as sectors with high growth potential and strong cyclicality. Institutional funds tend to concentrate during periods of rapid profit growth, but when stock prices reach a certain level or investor sentiment weakens, capital withdrawal and profit-taking also proceed more quickly than in other industries. Watcher.Guru diagnosed that these characteristics continue to pressure SK Hynix's stock price in July.
However, the long-term growth outlook is not considered to be damaged. As semiconductors are essential for next-generation AI technology and data center operations, chip demand and the revenues of related companies are likely to increase significantly by 2030. The media projected that this decline could be seen as an opportunity to accumulate shares at a low price, and greater profits could be expected if held for the long term beyond 2030.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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