Shares of SK Hynix plunged 15% in Asia after reports suggested its quarterly profit may miss estimates, dragging down the broader chip sector.
Chip stocks fell sharply in premarket trading Monday, led by SK Hynix, whose shares dropped 15% in Asia. Investors took profits amid concerns over an overcrowded AI trade and reports that the company’s operating profit may trail consensus estimates for the current quarter.
The decline follows SK Hynix’s record $26.5 billion US IPO, where its shares surged 13% above the $149 offering price on Friday. Rival memory stocks, including Micron, Sandisk, and Western Digital, fell over 5%, while Intel, AMD, Broadcom, and Arm Holdings declined roughly 2%.
The sell-off reflects broader volatility in semiconductor stocks, which have been driven by AI infrastructure spending but face risks from potential slowdowns in investment. The sector peaked in late June amid concerns over rising debt levels among cloud providers.