SK Hynix’s U.S.-listed American depositary receipt (ADR) has fallen below its IPO price. SpaceX, which drew attention as a large initial public offering (IPO), has also dropped below its offering level, adding to concerns about overstretched valuations for newly listed U.S. stocks.

On July 28, the financial investment industry said SK Hynix’s ADR closed at $143.02 on the New York stock market on July 27, down 7.47 percent from the previous session.

That is below both the $170 opening price on its first day of trading on July 10 and the IPO price of $149. It is down 26.58 percent from the intraday high of $194.80 hit on July 14.

A correction in the global semiconductor sector and concerns about oversupply stemming from expanded investment in artificial intelligence (AI) infrastructure are seen as weighing on the stock.

The Philadelphia Semiconductor Index has fallen more than 20 percent since late last month. Even so, its return since the start of the year still tops 60 percent, keeping profit-taking pressure in place after a sharp short-term rise.

Nvidia fell 4.99 percent, and controversy over so-called "circular finance" has resurfaced over the structure used to generate demand through funding support and loan guarantees among AI companies.

There is concern that a $500 billion AI infrastructure and memory cooperation project being pursued by Nvidia and the SK Group could spur investment that exceeds actual demand.

Growth in China’s semiconductor industry has also weighed on semiconductor companies at home and abroad.

China’s ChangXin Memory Technologies (CXMT) ended its first day of trading on the STAR Market at 49 yuan, up 465.82 percent from its IPO price of 8.66 yuan. Reports that a Chinese state-owned company has begun mass production of deep ultraviolet (DUV) lithography equipment for semiconductor manufacturing also dampened investor sentiment in related sectors.

SpaceX shares are also trading below their IPO price. Since listing last month, SpaceX rose as high as $225.64 intraday, but it has now fallen to $113.50, below its IPO price of $135.

The stock is seen as weighed down by the burden of a high valuation, the possibility of a release of lock-up shares in early next month, and large AI-related capital expenditure.

China Aerospace Science and Technology Corp (CASC) also raised concerns about intensified competition by successfully recovering at sea the first-stage booster of the Long March-10B launch vehicle and entering the reusable rocket market long led by the United States.

With large newly listed stocks showing a string of weak performances, there are expectations that it could also affect IPOs by follow-on AI companies such as Anthropic and OpenAI.

Anthropic is proceeding with related procedures with a target of listing as early as October, and OpenAI is reported to have submitted a confidential IPO filing to the U.S. Securities and Exchange Commission (SEC).