Yesterday I said SK Hynix was surprising low. Today it hit Korea's 30% limit. I don't think the US ADR will catch up.

Yesterday I said SK Hynix looked surprisingly cheap below $130. Today, its Korean-listed shares hit Korea’s 30% daily price limit. [https://www.reddit.com/r/stocks/comments/1vamep5/sk\_hynix\_at\_below\_130\_seems\_low\_especially\_after/](https://www.reddit.com/r/stocks/comments/1vamep5/sk_hynix_at_below_130_seems_low_especially_after/) The sequence that led up to this jump: 1. Korean semiconductor stocks were crushed earlier this week as investors de-risked the AI trade. 2. Hynix reported record Q2 revenue and operating profit, but still missed extremely high expectations, triggering another selloff. 3. Microsoft then reported strong results and showed that its AI spending is translating into actual revenue and profit. 4. U.S. memory rebounded first. 5. Korea opened later and compressed several sessions’ worth of sentiment reversal into one limit-up move. **My prediction for the U.S. session:** SKHY opens strongly, perhaps around +5%, but gives back most of the move and closes within 2% of its previous close. This is not a bearish call on the business. Demand still exceeds supply. My concern is that the ADR continues to trade at a substantial premium to the FX-adjusted Korean shares. That premium does not have to disappear immediately, but it limits the ADR’s near-term upside unless the Korean shares continue catching up. **My prediction for the next Korean session is similar:** retail momentum produces another strong open, but the stock fades intraday, closes below its opening price and finishes up less than 5%. I will check back on Monday to resolve my predictions. \-------------------------------------------------------------- ***Pre-market update:*** *SKHY is indicated around $160, which is a stronger opening than my rough +5% estimate.*