By Kwanwoo Jun
SK Hynix shares fell Tuesday after South Korea's stock market operator issued a warning for the second time in about a month that investors should trade in the red-hot shares with caution.
Shares in the key supplier of high-bandwidth-memory products to Nvidia were recently down 1.9% at 566,000 won, equivalent to $385.15, in Seoul trading, following gains of more than 6% in the previous session. The benchmark Kospi was last 0.6% lower.
Though on course to snap a two-session winning streak, SK Hynix's stock has still more than tripled this year amid an artificial-intelligence boom that has fueled demand for HBM products and other powerful AI chips.
Earlier Tuesday, Korea Exchange issued an "investment caution" on SK Hynix's shares, a warning that allows trading to proceed but requires traders to exercise more caution than usual. In November, the stock drew a similar warning from the exchange operator.
The warning, which lasts for one trading day, could be elevated in the coming weeks to limit trading in the stock if it continues to be extremely volatile.
SK Hynix shares on Monday jumped 6.1% on a robust AI-driven earnings outlook as well as market hopes over the possible issuance of American depositary receipts by the chip makers.
The company didn't immediately respond to requests for comment on market expectations regarding ADRs.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
12-08-25 2351ET
