On July 13, shares of memory chip giant SK Hynix plunged 10% in Seoul trading on Monday, just one day after its highly successful U.S. market debut, exerting downward pressure on the broader Korea Composite Stock Price Index (KOSPI). The company’s stock had surged 13% in New York on Friday, reflecting strong investor enthusiasm.

Jason Minsang Kam, head of active equity management at Kyobo Life Insurance in Seoul, noted that the upward momentum from New York had already been fully reflected in valuations. Consequently, SK Hynix’s shares could face significant profit-taking and unwinding of arbitrage positions during Monday’s session.

SK Hynix’s landmark $26.5 billion U.S. share issuance is widely regarded as a critical barometer of global demand for overseas listings and the sustainability of the artificial intelligence (AI) rally. As the primary supplier of high-bandwidth memory (HBM) for Nvidia’s AI processors, the company has become a focal point for international investors.

Despite recent market concerns over stretched AI valuations and elevated capital expenditure levels, the offering attracted overwhelming demand, with subscriptions exceeding available shares by more than sevenfold.