Following SpaceX, which drew massive attention as the largest-scale public offering ever, SK Hynix's American Depositary Receipts (ADRs) have also suffered the humiliation of plunging below their initial public offering (IPO) price amid a continuous downward spiral.
With this year's Wall Street super rookies showing sluggish stock performance, market observers are raising concerns that it could impact upcoming mega IPOs, including OpenAI.
Last night on the New York Stock Exchange, SK Hynix ADRs closed down more than 7% from the previous session at $143.02.
This marks a level that falls short of not only the opening price of $170 on its debut day on the 10th, but even the IPO price of $149.
Domestic and international semiconductor stocks are experiencing extreme volatility driven by strong profit-taking pressures following the short-term surge in semiconductor-related shares, coupled with growing skepticism over how long big tech companies can sustain their cutthroat spending war on AI infrastructure.
Furthermore, ChangXin Memory Technologies (CXMT) closed up more than 460% from its IPO price of 8.66 yuan on China's STAR Market yesterday, prompting analyses that the pursuit by Chinese firms is adding further pressure to the stock prices of major semiconductor companies in the U.S., South Korea, and elsewhere.
In addition, SpaceX has also seen its stock price cut in half from its peak, putting a significant number of investors in the red.
SpaceX shares turned downward after hitting an intraday peak of $225.64 on June 16, the third day after its listing, and currently hover around the $113 level, well below its $135 IPO price.
As SpaceX and SK Hynix ADRs—ranking first and second in historical U.S. IPO sizes—continue to struggle, some market segments are raising the possibility that these slumps could affect the IPO schedules of other anticipated giants like OpenAI and Anthropic.
OpenAI is aiming for a listing sometime next year, while Anthropic is pushing through procedures with a target as early as October of this year. However, as doubts spread across the market regarding investment stability in the AI industry, worries are growing that these firms might fail to secure their desired valuations or experience a dampening in subscription enthusiasm.
(Reported by Kim Taewon | Video by Choi Gang-san | Graphics by Yang Hye-min | Produced by SBS Digital News)
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