SK Hynix

The Nasdaq fell sharply and the semiconductor index lost ground after SK Hynix abandoned its review of a US listing for its memory unit Solidigm. For the group, this does not change the long-term need for growth and investment in memory chips for AI data centers. Market expert Stefan Sommer advises focusing on revenue, earnings and long-term growth drivers and points to the performance of his megatrend portfolio. » More on deraktionaer.de

SK Hynix has temporarily halted the planned US IPO of its memory subsidiary Solidigm, citing unfavorable market conditions. The announcement came after a drop in the parent company’s share price and, in the current situation, the listing would have yielded lower proceeds for new shares; there were also shareholder concerns and regulatory rules against dual listings. Solidigm will remain within the SK Hynix group, while funding is still needed for the construction of a new US plant, which competes with the accelerated share buyback of more than 40 trillion won. The decision relieves shareholders in the short term but does not resolve the financing issue for the plant. » More on deraktionaer.de

Shares of key AI chipmakers tumbled in Asia and U.S. premarket trading, with SK Hynix down about 10.1% and Samsung down 7.4%, dragging broader indices and hitting peers including Kioxia, TSMC and SoftBank. The selloff followed Chinese memory maker CXMT’s announcement of a new RAM architecture that could boost memory density by 30–50%, raising competitive concerns. Broadcom CEO Hock Tan also warned that many AI investors are behaving like gamblers with unrealistic expectations, adding to market nervousness. » More on forbes.com