SK Hynix Drops 3.1% as Foreign Funds Retreat and Solidigm Financing Talk Swirls
Published on 10/12/2026 at 05:31 | Editorial boerse-global.de
Shares of SK Hynix fell 3.1% to KRW 1,629,000.00 on Thursday, dragged lower by a broad retreat across South Korean equities and the semiconductor complex. The decline came as market participants began to question whether the memory-chip upcycle has run its course, with profit-taking and heavy foreign outflows compounding the pressure. Samsung Electronics, SK Hynix's cross-town rival, also traded weaker.
The selling was not confined to Seoul's trading floor. Between August 31 and October 8, overseas investors dumped a net KRW 15.9992 trillion worth of SK Hynix stock, according to media reports. Foreign ownership stood at 49.59% as of early October. Portfolio rebalancing and hedging activity added further drag on the memory specialist's share price.
A Fading Buyback Cushion
One factor that had been propping up the stock is now fading. SK Hynix's own share repurchase program is nearing completion, and with the bulk of the buyback already executed, a key source of demand-side support is winding down.
Sentiment also took a hit from a Financial Times report indicating that AI developer OpenAI's annualized revenue came in $20 billion below previously signaled levels. Combined with rising crude oil prices and renewed interest-rate jitters, the news triggered selling across memory-chip makers.
Should investors sell immediately? Or is it worth buying SK Hynix?
The divergence between the sector and the stock has been stark. While the KRX Semiconductor index gained 11.42% between September 9 and October 8, SK Hynix shares lost 6.25% over the same stretch. Leveraged exchange-traded fund transactions contributed to South Korean tech names falling behind, according to media accounts.
Solidigm's Financing Path Still Undecided
On the corporate front, SK Hynix moved to tamp down speculation about its US-based NAND subsidiary. On October 1, the company stated that no decisions have been made regarding Solidigm's future capital plans, leaving open the choice between internal and external financing.
Reports had suggested Solidigm is preparing a sizable funding round — a pre-IPO capital raise conducted through an open bidding process — with Goldman Sachs and Morgan Stanley mandated as underwriters. The exact target size and timeline remain undetermined.
SK Hynix said it is weighing various options to strengthen the US unit, evaluating any potential external capital injection for its impact on existing shareholders and long-term corporate value. The cautious language follows concerns raised in South Korea about the protection of domestic minority shareholders should significant assets be carved out through a foreign listing.
With third-quarter earnings on the horizon, caution remains the dominant mood. After an extended rally, the semiconductor sector appears to be entering a consolidation phase in which investors are once again putting cyclical risks front and center.
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