Following SK Hynix’s announcement of plans to list American Depositary Receipts (ADRs) on the U.S. market, Micron Technology stood out as the only major U.S. semiconductor stock to tumble by over 3%.
On Wednesday, U.S. chip stocks rallied after British semiconductor design firm ARM revealed its intention to produce dedicated artificial intelligence (AI) chips, causing ARM’s shares to surge more than 16%.
In contrast, Micron’s stock plummeted 3.40%, closing at 382.09 USD.
Market experts suggest that SK Hynix’s potential U.S. listing could prompt American investors to shift their focus from Micron to SK Hynix.
SK Hynix boasts a formidable presence in the memory market, controlling 34% of the dynamic random access memory (DRAM) sector and 57% of the high-bandwidth memory (HBM) market, significantly outpacing Micron’s market share.
Financial publication Barron’s forecasts that U.S. investors may view SK Hynix as a compelling alternative to Micron, potentially redirecting substantial investments.
This latest decline marks Micron’s fifth consecutive day of losses, with the stock shedding 17% over the past five trading sessions and 10% in the last month.
The downward trend appears to be fueled by widespread profit-taking on Micron shares.
Despite the recent setback, Micron’s stock has still surged 33% year-to-date and an impressive 305% over the past 12 months.
The recent slide has significantly eroded Micron’s market capitalization. The company had previously maintained its position as the 21st largest global company by market cap.
However, the recent downturn has pushed Micron down to 24th place, while SK Hynix has climbed to the 21st spot.