What happened: Chip stocks declined in premarket trading on Monday, led by shares of South Korean memory maker SK Hynix (000660.KS, SKHYV).
What's behind the move: Investors took profits amid concerns of an increasingly overstretched and crowded trade. Worries over a report signaling that SK Hynix's operating profit for its current quarter may trail consensus estimates also weighed on sentiment.
SK Hynix stock sank 15% in Asia, setting the stage for a sharp decline in US traded shares after their stellar debut on Friday. Rival Samsung Electronics (005930.KS) also fell in South Korea, while AI memory stocks Micron (MU), Sandisk (SNDK), and Western Digital (WDC) all sank more than 5% on Monday morning.
Chip stocks Intel (INTC), AMD (AMD), Broadcom (AVGO), and Arm Holdings (ARM) also declined roughly 2% with the broader sector.
What else you need to know: The decline marks a sharp reversal from SK Hynix's US debut, in which its American depositary shares surged 13% above the $149 offering price on Friday. The company raised $26.5 billion in the offering, making it the largest US IPO ever by a foreign company.
What's behind the move: Investors took profits amid concerns of an increasingly overstretched and crowded trade. Worries over a report signaling that SK Hynix's operating profit for its current quarter may trail consensus estimates also weighed on sentiment.
SK Hynix stock sank 15% in Asia, setting the stage for a sharp decline in US traded shares after their stellar debut on Friday. Rival Samsung Electronics (005930.KS) also fell in South Korea, while AI memory stocks Micron (MU), Sandisk (SNDK), and Western Digital (WDC) all sank more than 5% on Monday morning.
Chip stocks Intel (INTC), AMD (AMD), Broadcom (AVGO), and Arm Holdings (ARM) also declined roughly 2% with the broader sector.
What else you need to know: The decline marks a sharp reversal from SK Hynix's US debut, in which its American depositary shares surged 13% above the $149 offering price on Friday. The company raised $26.5 billion in the offering, making it the largest US IPO ever by a foreign company.
16 days ago
