Should you buy SKHY stock after its worst month since 2008?
SKHY stock has plunged roughly 41% this month—its worst stretch since October 2008—and ADRs slid below the $149 US IPO price ahead of Wednesday's earnings. Buying the dip is a high-conviction call: Wall Street still expects blockbuster AI-driven results, but China supply fears and a sharp Seoul selloff show near-term risk remains elevated.
Key Takeaways
- SKHY stock is on track for its worst month since October 2008 after a roughly 41% plunge, with shares in Seoul falling another 14% a day before second-quarter earnings.
- US-listed ADRs traded as low as $139.01, below the $149 price from SK Hynix's record $26.5 billion US offering earlier in July.
- ChangXin Memory's Shanghai debut, which soared more than 460% on day one, reignited fears that China could rapidly expand DRAM supply and cool memory pricing.
- Consensus still points to about $55.7 billion in Q2 revenue and $4.79 EPS—huge year-over-year jumps tied to high-bandwidth memory demand.
- Nvidia and SK Group also flagged more than $500 billion in planned AI infrastructure work that includes HBM collaboration with SK Hynix.
What Happened to SKHY Stock This Month?
The last time SK Hynix Inc. (NASDAQ: SKHY) saw a monthly drop this severe, Lehman Brothers had just collapsed. According to Yahoo Finance reporting, the memory giant's shares have plunged about 41% in July, marking the worst monthly performance since October 2008.
The selloff accelerated with a further 14% drop in Seoul just one day before second-quarter results. Bloomberg also reported that the company's American depositary receipts slumped as much as 10% to a low of $139.01, breaking well below the $149 level where securities were sold on July 9 in a record $26.5 billion US debut—joining SpaceX among large 2026 offerings trading under IPO price.
Why Did Memory Stocks Sell Off Before Earnings?
The memory trade has shifted from celebrating current profits toward fretting about future supply. ChangXin Memory Technologies' blockbuster Shanghai listing sent shares up more than 460% on the first trading day and revived concerns that China could ramp DRAM production fast enough to normalize prices.
That narrative hit Micron, SanDisk, Samsung, and SK Hynix together. Only days earlier, Wall Street still cast memory as one of AI's clearest winners; now investors are asking whether pricing power is already peaking—even as fundamentals still look strong on paper.
For readers tracking semiconductor swings alongside broader portfolio moves, see our Net Worth & Wealth coverage for related market context.
Should You Buy SKHY Stock Ahead of Q2 Results?
Fundamentals tell a different story from the chart. Wall Street expects second-quarter revenue of $55.7 billion and earnings per share of $4.79—implying roughly 243% year-over-year revenue growth and a 604% EPS surge, driven by high-bandwidth memory used in Nvidia's AI accelerators.
SK Hynix has met or beaten expectations for six straight quarters, including a nearly 50% EPS beat last quarter and revenue more than $2.3 billion above consensus. Since early 2025, earnings surprises have often ranged about 20% to 65%, yet stocks barely moved after many of those reports, suggesting good news was already priced in.
Buying into Wednesday's print is therefore less about whether Q2 looks strong and more about whether management can prove the AI buildout still has years left—especially after Nvidia and SK Group outlined a partnership tied to more than $500 billion of planned AI infrastructure, including HBM work with SK Hynix. The long-term demand case looks intact; the near-term China-supply overhang does not.