SK hynix remains a buying opportunity, with its US ADR premium over Korean shares now at an all-time low of 32.66%. x.com  x.com 

SK hynix's dividend delivers far less value to holders of its premium-priced US ADRs than buybacks would. The ADR premium destroys a third of the yield, and income taxes push the total value lost versus buybacks above 50%; the dividend decision is atrocious for US holders. x.com  x.com 

SK hynix's US ADS trades at a persistent premium to its Seoul shares, so US buyers are overpaying for the same company. At today's won rate, the Seoul shares behind one ADS are worth $130.47 while the ADS trades at $186.76, a 43.1% premium. In 53 sessions since the 10 July listing the premium has never fallen below 14.8%, holding between 29% and 47% since mid-August. Arbitrage is limited because the prospectus says depositing shares for ADSs may be restricted by US and Korean law. x.com  x.com  … Show more

SK hynix's 'insane' earnings set up a sharp move higher in the shares. x.com 

SK hynix's Korean shares look like the buy, because American investors bid its US ADR to a 40% premium while Korean investors push the local shares lower every day on cascading margin calls. x.com 

SK hynix's US listing trades at a 20% premium to Korea, hard to justify for a peak cyclical name on peak earnings whose estimates were just revised down. x.com 

SK hynix's US ADR debut should not be shorted like a typical IPO, because it is an already-priced $1 trillion Korean company, not a new listing. Lockups and price-discovery gaps do not apply, and arbitrage keeps the ADR pinned to the Seoul shares. SK hynix is the undisputed king of HBM, the bottleneck for Nvidia's AI GPUs, and the record $26.5B ADR was 7x oversubscribed as US funds seek dollar exposure to AI memory. Shorting it is a bet against Korean chips and the AI memory cycle. x.com 

Korean equities have a central role in the AI trade because Samsung and SK hynix supply most of the memory it needs. Despite the shakeout, the KOSPI leads the major markets shown at roughly +36% this year. The bullish lean faces a flow warning: Korean semiconductor ETF 20-day flows fell from nearly +$4B in June to about -$703M by October 18 as the index approaches rising support. x.com  x.com  x.com  x.com  x.com 

SK hynix's ADR listing drawing leveraged ETFs is peak-cycle behavior, because the juiced vehicles always arrive after the demand is already in the price. A report in the thread notes the ADRs priced at a 3% premium as Wall Street readies a wave of leveraged ETFs on what is the biggest chip listing ever. x.com 

SK hynix is better owned on the Korean exchange than through its US listing. The US shares trade at a market value more than $300B above the Korean shares, a 35% premium, and the ADR adds country, compliance and exchange risks. Investors wanting US-listed memory exposure could simply combine Micron and Sandisk. x.com