SK Hynix dropped more than 7% in Seoul before soaring on its first day of trading on the NASDAQ.

SK Hynix briefly fell 8.2% on the South Korean stock exchange; the company's American depositary receipts rose 13% on the first day of trading. Korea Investment & Securities predicts that SK Hynix's operating profit in the second quarter may be 8% lower than market expectations, as the company's revenue from HBM is higher compared to its peers, limiting the potential for an increase in average selling prices. Jason Minsang Kam, the active equity management director at Kyobo Life Insurance in Seoul, mentioned that historically there has been a structural valuation gap of around 15% between the local stock and ADR of global large enterprises like TSMC due to forex and regulatory frictions. He also warned that SK Hynix may face significant profit-taking and arbitrage closing on the New York market, resulting in a close with a long upper shadow. The vision of SK Hynix transforming memory into "customized solutions services" through HBM is considered a steady long-term narrative. However, as Morgan Stanley and other investment banks have warned, memory remains a cyclical commodity. The 'service provider' premium only exists during supply shortages, as shown by a 15% premium of its ADR over its Korean shares on Friday.