AI Memory Giant SK Hynix Reverses Losses, Spiking 5% Intraday

TradingKey - SK Hynix reverses its weak opening, surging intraday; however, chasing the rally blindly is not recommended.

During the early trading hours in Asia on July 8, South Korean AI memory giant SK Hynix staged a strong reversal from losses to gains, surging over 5% intraday to hit a high of 2,329,000 KRW, with the gain now narrowing to 3.09%. At the market open this morning, SK Hynix fell sharply by over 4%, nearing the 2 million KRW psychological level.

SK Hynix Stock Price Chart, Source: TradingView

Yesterday, SK Hynix fell over 6% and extended its decline at the open this morning before staging an intraday reversal. This highly volatile "deep V-shaped" movement reflects intense tug-of-war between bulls and bears, driven by deep divisions over its upcoming US listing, as investors struggle to determine whether the news is bearish or bullish.

This Friday (July 10), SK Hynix will list on the Nasdaq in the US, launching a historic ADR listing worth up to $28 billion. The market is concerned about equity dilution and high-level cash-outs. However, investors have noted that top-tier Wall Street institutions—including Situational Awareness, a star hedge fund founded by a former top OpenAI researcher, British long-term investment giant Baillie Gifford, and Coatue—have heavily subscribed to up to $7 billion of the shares, underscoring their bullish outlook on SK Hynix.

Regarding the strong technical rebound and inflow of bottom-fishing capital after the release of short-term market panic, investors are advised against blindly chasing highs during intraday surges. Instead, they should wait and see the pricing performance after the US ADR listing on July 10. If the spot price pulls back to support levels and buying momentum in the US stock market remains strong, investors can then consider entering positions in batches.