SK Hynix American Depositary Receipts (ADR) surged over 8% on the New York Stock Exchange on July 17 (local time), rebounding after two consecutive days of sharp declines. The stock rose 8.44% to $165.17 as of 1:01 PM, recovering from a 9.00% drop on July 15 and a 13.69% decline on July 16. The rally came as bargain-hunting emerged in semiconductor stocks following SK Group Chairman Choi Tae-won's advice for long-term holding, with the Philadelphia Semiconductor Index also showing signs of recovery. Analysts attributed the rebound to perceptions of excessive selling in semiconductor stocks and continued demand for AI computing resources, evidenced by Anthropic's reported request to Meta Platforms for a computing resource contract worth up to $10 billion over two years.
SK Hynix ADR Rebounds 8.44% After Two-Day Decline
According to Yonhap Infomax stock price data, SK Hynix (NAS:SKHY) traded at $165.17 on the New York Stock Exchange as of 1:01 PM on July 17 (local time), marking an 8.44% increase from the previous session. The stock reversed its downward trajectory after consecutive declines of 9.00% on July 15 and 13.69% on July 16.
The Philadelphia Semiconductor Index, which tracks semiconductor and artificial intelligence (AI) stocks, also showed signs of stabilization. The index had plunged as much as 5.67% during the day before gradually recovering. Other major semiconductor stocks also turned positive, with Micron Technology up 5.25%, AMD gaining 0.47%, and Broadcom down only 0.63%.
Market analysts interpreted the recovery as bargain-buying following what they viewed as excessive selling pressure on semiconductor stocks. The positive sentiment was further supported by news that AI company Anthropic requested a computing resource contract worth up to $10 billion over two years from Meta Platforms, indicating sustained demand for computing infrastructure.
![SK Group Chairman Choi Tae-won speaking at an event]()
SK Group Chairman Choi Tae-won speaking at the 49th Korea Chamber of Commerce and Industry Jeju Forum on July 17
Chairman Choi Advises Long-Term Holding of Semiconductor Stocks
SK Group Chairman Choi Tae-won addressed SK Hynix stock performance on July 17, advising investors to maintain their positions. "Memory will continue to be needed in the future, so if you look at it over time, it will go upward," Choi stated. "Just hold on to it. Don't buy and sell."
He elaborated on his investment philosophy: "I don't know what the stock price will be next month, but holding on to it is the best way to preserve your wealth."
Choi's comments came as semiconductor stocks experienced heightened volatility, with his remarks appearing to influence investor sentiment toward long-term holding strategies rather than short-term trading.
Analysts Assess AI Investment Cycle Maturation
Angelo Kourkafas, senior global investment strategist at Edward Jones, provided his assessment of the current AI investment landscape. "The AI investment theme is not collapsing but is likely entering a maturation phase, which is a healthy phenomenon that appears in the evolution of innovative investment cycles," Kourkafas stated.
He recommended that "investors should maintain exposure to the AI theme while complementing their portfolios with more diverse and differentiated sources of returns, such as cyclical sectors, value stocks, and international equities."
David Morrison, market analyst at Trade Nation, framed the current situation as a critical juncture: "The question now is whether this correction will be another bargain-buying opportunity, or whether the pace of selling will accelerate as everyone rushes to the exit at the same time."
FAQ
What caused SK Hynix ADR to surge 8% on July 17?
SK Hynix ADR rose 8.44% to $165.17 on July 17 (local time) following two consecutive days of declines. The rally was attributed to bargain-hunting after perceived excessive selling, SK Group Chairman Choi Tae-won's advice to hold semiconductor stocks long-term, and news of Anthropic's request to Meta Platforms for a computing resource contract worth up to $10 billion over two years.
What did SK Group Chairman Choi Tae-won advise regarding SK Hynix stocks?
Chairman Choi Tae-won advised investors on July 17 to hold SK Hynix stocks rather than trade them actively. He stated that "memory will continue to be needed in the future" and that stocks will trend upward over time. He recommended investors "just hold on to it" and described holding as "the best way to preserve your wealth," though he acknowledged uncertainty about next month's stock price.
How did other semiconductor stocks perform on July 17?
The Philadelphia Semiconductor Index recovered after falling as much as 5.67% during the day. Micron Technology rose 5.25%, AMD gained 0.47%, and Broadcom declined 0.63%. The sector showed signs of stabilization following recent volatility.
