SK hynix Inc. ADR (SKHY) plummeted 5.12% during the after-hours session on Tuesday, marking a sharp reversal from its earlier gains.
The decline is attributed to investors locking in profits following a dramatic intraday surge where the stock rallied over 10% during regular trading. This earlier rally was driven by a bullish semiconductor research report and news of the company commencing mass production shipments of its advanced HBM4 memory chips.
Market analysts also pointed to the compression of the stock's significant premium as a U.S.-listed ADR over its underlying South Korean shares, which created selling pressure and arbitrage opportunities, contributing to the after-hours pullback.
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