SK Hynix Stock Drops as AI Fears Resurface

SK Hynix shares plunged Monday on its first day of U.S. trading as investors booked gains following a 500% rally over the past 12 months and concerns over artificial intelligence spending sustainability returned to focus.

The South Korean memory-chip maker's U.S. debut was overshadowed by profit-taking pressure, with traders questioning whether the massive run-up fueled by AI demand has stretched valuations. The sell-off marks a sharp reversal for a stock that rode the generative AI wave to become one of the best performers in global semiconductor markets over the past year.

The timing of the pullback coincides with broader scrutiny of capital expenditure trends among hyperscale cloud providers and AI infrastructure builders, raising questions about near-term memory chip pricing power. SK Hynix has been a primary beneficiary of high-bandwidth memory demand from AI data centers, particularly its HBM3E chips used in Nvidia's AI accelerators.