Nvidia · South Korea · CNBC Technology
SK Hynix shares slide after chipmaker scraps Solidigm IPO gears up
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Shares of South Korean chipmaker SK Hynix's were down as much as 3% in Seoul on Friday morning after the company halted a review of a potential U.S. initial public offering for its subsidiary Solidigm.
Key facts
- The tech-heavy Nasdaq Composite slid 2.6% on Thursday, its worst session since June, while Nvidia fell 4.4% and Advanced Micro Devices dropped 8.1%
- Amid a sell-off in memory stocks, Nvidia CEO Jensen Huang told CNBC Thursday that he does not expect an oversupply of memory chips by 2029, despite concerns over weakening demand
- Shares of South Korean chipmaker SK Hynix's were down as much as 3% in Seoul on Friday morning after the company halted a review of a potential U.S. initial public offering for its subsidiary Solidigm
- AI data center stocks have also come under pressure amid growing concerns over financing risks and the pace of AI infrastructure expansion
Summary
"Solidigm will halt its review of potential pre-IPO and IPO options," the company said in the statement after assessing recent capital market conditions and share price trends, while also exploring various funding options to finance a new U.S. semiconductor fabrication plant amid growing demand for AI memory. The chip manufacturer said an IPO could have helped fund Solidigm's expansion while providing greater financial flexibility for shareholder returns, including dividends, share buybacks and share cancellations. However, financial market volatility had increased and contributed to a broader correction in semiconductor stocks, prompting SK Hynix to reassess whether an IPO would benefit existing shareholders.