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SK Hynix whipsawed from a 27% Tuesday surge to a 6% Wednesday drop as traders lock in gains, with Micron up 244% YTD.
Western Digital is the mildest decliner ahead of its July 29 earnings, while the Roundhill Memory ETF tracks the group down 3%.
Four new leveraged SK Hynix ETFs launched this week mechanically amplify intraday swings and can lose an investor’s full principal in a single session.
This lithium producer surpassed a $1B private valuation, joining some of America’s most powerful startups. Now you can invest in EnergyX alongside global giants like General Motors, but only through July 16. (sponsor)
Memory stocks are pulling back sharply Wednesday morning as traders lock in gains after a parabolic run. SK Hynix‘s (NASDAQ:SKHY) U.S.-listed ADR is down 5% to $184.50 in early trading, giving back a chunk of yesterday’s 27% surge to $193.92.
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The reversal is rippling through the group. Micron Technology (NASDAQ:MU) shares are off 3% to $953, SanDisk (NASDAQ:SNDK) shares are down 6% to $1,658, and Western Digital (NASDAQ:WDC) shares are down 4% to $541. The Roundhill Memory ETF (CBOE:DRAM) is tracking the group lower, off 3% to $59.
The pullback follows one of the strongest rallies in semiconductors this year, with Micron shares up 244% year to date (YTD) and SanDisk shares up 640% YTD at Tuesday’s close. There’s no confirmed company-specific negative catalyst, and the move looks like broad profit-taking in the priciest AI beneficiaries.
Profit-Taking Caps a Parabolic Run
SK Hynix stock has been the volatility story of the sector since its record NASDAQ ADR debut. The ADR whipsawed from a 27% surge Tuesday to a 5% drop today, a swing that reflects a thin float, an ADR premium to the Seoul-listed shares, and heavy demand from newly launched leveraged products.
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