SK Hynix shares dropped on Wednesday after the company denied reports that it planned to buy an Intel manufacturing plant. Investors are now looking ahead to Alphabet’s upcoming earnings report, which could have a bigger impact.
SK Hynix’s American depositary receipts fell 2.8% in early trading, pulling back after Tuesday’s 13.8% surge during a broader rally in chip stocks. In Seoul, the company’s shares closed down 0.3% on Wednesday after rising as much as 9% earlier in the day.
The stock movement came after South Korean outlet JoongAng Daily reported that SK Hynix was in talks to buy Intel’s unfinished fabrication campus in Ohio. In a filing with the Korean stock exchange, SK Hynix said it has not pursued or decided to acquire the Ohio site, but it is still considering different investment and acquisition options. An Intel spokesperson told Barron’s that Intel is still committed to the Ohio site and is investing to speed up its completion. Intel shares were mostly unchanged in early trading.
Korean investors are used to SK Hynix’s volatile stock movements. The shares have climbed over 140% in the last six months but dropped 37% in the past month. U.S. investors, who got access when the company listed its ADRs in New York earlier this month, have seen only a 2% gain since then, as the shares have been turbulent.
The next event that could move the stock may come as soon as Wednesday, when Alphabet reports earnings after the market closes. Investors will pay close attention to any comments about artificial intelligence spending, which is important for memory chipmakers. There are still concerns, including from SK Hynix, that current chip prices might not last.
