South Korea’s SK Hynix (SKHY) has canceled the planned U.S. initial public offering (IPO) of its Solidigm memory-chip unit.
SK Hynix created the Solidigm business unit in 2021 after acquiring Intel’s (INTC) NAND flash memory and SSD business.
The company said the decision to scrap the planned IPO was due to “market conditions and share price trends.”
SK Hynix’s own stock has long been traded in its home market of South Korea. But the company executed a dual listing of its stock in New York in July of this year.
Since then, SKHY stock has been volatile and fallen 22% to trade at $131.69 U.S. per share.
The decision to cancel the IPO of Solidigm comes a day after the technology-heavy Nasdaq Composite index fell nearly 700 points or 2.60%.
Technology stocks have come under pressure as investors grow increasingly nervous about the sustainability of the artificial intelligence (A.I.) trade.
In particular, investors are jittery about the amount of money companies are spending on A.I. infrastructure such as data centres.
Stocks of chipmakers such as SK Hynix have been at the centre of the A.I. trade and seen their stocks rise sharply. Over the past year, SK Hynix’s stock has gained 167% in South Korea.
But stocks of chipmakers are now falling sharply as investors rotate capital into defensive areas of the market.
While SK Hynix has canceled the planned IPO of its Solidigm memory-chip unit, A.I. startup company Anthropic is still expected to hold its IPO by the end of this year.
Anthropic is reportedly seeking a $2 trillion U.S. valuation as part of its planned IPO, which would make it the biggest market debut for a company in Wall Street’s history.
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