Memory chip giant SK Hynix plunged further in South Korea on Monday, just one trading day after its successful debut on the Nasdaq.

Shares listed on the Korea Stock Exchange closed down 15.4% (the steepest drop in the stock’s history) as investors locked in profits after a months-long rally and the company’s closely watched ADR listing in the United States. The event raised $26.5 billion, surpassing Alibaba’s initial public offering more than a decade ago.

SK Hynix American Depository Receipts began trading on the Nasdaq on Friday, opening at $170 (about 14% above the reference price of $149) before ending its debut session up 12.8%.

Meanwhile, rival chipmaker Samsung Electronics lost more than 10%.

Losses in the two index heavyweights caused the benchmark Kospi index to fall sharply, causing a 20-minute trading halt after a circuit breaker was tripped for the seventh time this year. The index subsequently closed almost 9% lower.

It looked like SK Hynix’s sharp decline would spread to Western chipmakers, with shares of U.S.-listed companies such as Nvidia, AMD and Intel falling in premarket trading.

Monday’s selloff also came as Asian markets retreated broadly amid renewed tensions in the Middle East and concerns about whether the AI-driven rally had outpaced fundamentals.

In Japan, the Nikkei 225 fell about 2%, while Kioxia memory chip stocks fell almost 13%.

All three major U.S. stock futures fell early on Monday, with the tech-heavy Nasdaq falling 1% just before 7 a.m. ET. The S&P 500 and Dow Jones posted minor losses of 0.3% and 0.03%, respectively.

Despite the sharp decline, analysts remain generally optimistic about SK Hynix. The company’s Korean-listed shares have nearly doubled this year.

Morningstar values ​​the company’s ADRs at $160 and its Korean-listed shares at 2.4 million won each, implying the shares are fairly valued.

“The current upward recall cycle is proving substantially stronger than expected, but our base case continues to assume normalization in cycle dynamics, limiting upside to current levels,” Morningstar analyst Lorraine Tan wrote in a note on Friday.

The drop in SK Hynix shares in South Korea on Monday means its US ADR is now trading at a premium of around 37%, a valuation gap that analysts are watching closely.

“Companies listed in both the US and domestic markets often trade at a premium to the US, benefiting from broader investor access, deeper liquidity and stronger valuation support, as seen with TSMC,” James Ooi, market strategist at Tiger Brokers, wrote on Monday.