Analysts warn the chipmaker’s record ADR listing may force institutional selling of NVIDIA and Micron to fund allocations.
SK Hynix’s upcoming $28 billion American Depositary Receipt listing on NASDAQ is raising concerns over market liquidity. The deal, the second-largest equity sale globally, could pressure AI-linked stocks as institutions rebalance portfolios to participate.
Micron shares fell 18% in a single week despite strong earnings, while Rivian’s 83% decline from $100 to $16 highlights risks for capital-intensive stocks during large IPOs. Analysts cite historical patterns where excess supply in mega-deals disrupts bull markets.
The IPO pipeline, including OpenAI and SpaceX, has amplified warnings about concentrated capital flows. SK Hynix, a key NVIDIA supplier, adds to concerns as its high-bandwidth memory franchise competes directly with Micron.