SK Hynix experienced a rollercoaster trading session, initially surpassing the 2 million won mark before giving back most of its gains.
On July 22, SK Hynix's stock rose to 2,006,000 won, breaking through the psychological resistance level of 2 million won. However, selling pressure soon followed, pushing the stock down to the 1.83 million won range. Charts showed a sharp rise in the early session, followed by a period of consolidation near the peak, before a significant drop in the afternoon that erased most of the earlier gains. Trading volume surged initially but then increased selling led to heightened volatility.
Toss Securities attributed the initial strength of SK Hynix to growing expectations for demand in AI semiconductors. The rebound in U.S. semiconductor stocks and a strong performance in the Philadelphia Semiconductor Index also contributed to buying interest in major domestic semiconductor stocks.
Additionally, the rise in American Depositary Receipts (ADRs) and KB Securities maintaining a target price of 4.2 million won with a 'buy' recommendation further stimulated investor sentiment. KB Securities projected that demand for AI memory would remain strong due to increased investments in AI infrastructure, long-term supply contracts, and a growing share of high-bandwidth memory (HBM) production.
SK Hynix is a global memory semiconductor company focused on DRAM and NAND flash, and it is accelerating the development of key memory technologies for the AI era, including HBM and CXL memory.
However, there has been no explanation from the company or the market regarding the reasons for the stock's decline after surpassing the 2 million won mark.
Market analysts suggest that profit-taking may have occurred following the rapid rise, and selling pressure concentrated around the psychological resistance level of 2 million won. The charts indicated that after several attempts to rise near this level, increased selling led to a downturn.
Moreover, the short-term buying momentum driven by AI expectations quickly dissipated in the afternoon, weakening the upward momentum, and some analysts noted that concerns over short-term technical overheating may have also played a role.
Ultimately, the buying interest that began with expectations for AI memory growth weakened under profit-taking pressure in the latter part of the session, resulting in a significant loss of earlier gains.
* This article has been translated by AI.
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