SKHY Stock Gives Back Some Of Its 27% Pop From Tuesday – Wall Street Rolls Out Another Leveraged Bet On The Stock

• Direxion launched a new 2x leveraged ETF tracking the SK Hynix shares.
• This follows GraniteShares' launch of long- and short-leveraged SK Hynix ETFs only days after the ADR began trading.
• Retail sentiment around SKHY stock remained in ‘extremely bullish’ territory on Stockwits, with message volume jumping more than 3,500% over the past 24 hours.

SK Hynix's U.S.-listed shares (SKHY) fell nearly 10% in morning trade on Wednesday, cooling off after a 27% surge a day earlier.

Direxion launched a new leveraged ETF tied to the stock on Wednesday as well, making it the fourth such ETF to hit the market since SKHY’s U.S. market debut. GraniteShares launched its own  2x Long SK hynix Daily ETF (SKUU) and 2x Short SK hynix Daily ETF (SKDD) earlier this week. ProShares Ultra SK hynix (SKHU) also launched earlier this month. 

SKHY stock was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around the newly debuted Nasdaq company trended in ‘extremely bullish’ territory over the past day, with chatter at ‘extremely high’ levels. Data showed an over 3,500% jump in message volume in the last 24 hours. 

Direxion Launches Leveraged SK Hynix ETF

Direxion, which runs some of the most heavily traded leveraged single-stock and sector ETFs, announced the launch of the Direxion Daily SK Hynix Bull 2X ETF (SKHL) on Wednesday. The fund aims to deliver twice the daily return of SK Hynix's ADR, before fees.

"The biggest story is that one of the world's premier AI memory companies will now be much easier to access in the U.S… It's a natural extension of the semiconductor franchise we've built."
– Mo Sparks, Chief Product Officer, Direxion

Retail Traders Debate Impact On Memory Stocks

Retail discussion on Stocktwits debated the impact of SK Hynix on peer companies. Some traders speculated whether Wednesday's dip would drag on other memory chip companies, including Micron (MU) and SanDisk (SNDK), which are also benefiting from strong demand for AI memory. SK Hynix and Micron compete directly in the HBM market.

MU’s stock fell by more than 6% in morning trade, while SNDK’s stock dropped more than 10%. Retail sentiment around MU on Stockwits dipped to ‘bearish’ from ‘neutral’ territory over the past day, while sentiment around SNDK remained in ‘bullish’ territory. 

SK Hynix's recent U.S. ADR offering raised $26.5 billion, making it the largest U.S. equity offering by a foreign company and surpassing Alibaba's (BABA) $25 billion listing in 2014. 

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