TLDR
- SK Hynix raised $26.5 billion in the largest-ever US listing by a foreign firm, pricing ADRs at $149 each
- Demand for the offering was more than seven times the available stock
- The stock begins trading today on Nasdaq under the ticker “SKHY”
- SK Hynix stock is up 680% over the past 12 months, but has dropped ~25% in the last two weeks
- Proceeds will fund new factories and equipment to meet AI chip demand
SK Hynix priced its American Depositary Receipts at $149 per share on Thursday, raising $26.5 billion in the largest-ever US listing by a foreign company. The South Korean chipmaker sold 177.9 million ADRs, with each share equivalent to one-tenth of a Seoul-traded common share.
The stock begins trading today on Nasdaq under the ticker “SKHY.”
Demand for the offering was fierce. A person familiar with the matter said investor appetite was more than seven times the number of shares available, though SK Hynix declined to comment officially on pricing or demand.
The ADRs were priced at a 2.7% premium over SK Hynix’s average share price across the last three trading days.
SK Hynix stock closed up 5% on Thursday in Seoul, though the stock has fallen roughly 25% over the past two weeks. Despite that pullback, it remains up 680% over the last 12 months.
The company’s 12-month forward price-to-earnings ratio currently sits at 5.5 times — down from 7.9 times at end-October — compared to US rival Micron’s 6.66 times.
The listing is partly designed to close that valuation gap. Micron has historically benefited from direct access to US capital markets despite holding less market share in key memory products.
“SK Hynix leads on share and Nvidia proximity, Micron competes on power efficiency, US positioning, and momentum from third place,” said Daniel Newman, CEO of Futurum Group.
Proceeds from the offering will go toward building new factories and equipment to keep pace with surging AI chip demand.
Why Investors Are Paying Attention
SK Hynix is the world’s leading supplier of high-bandwidth memory chips — the critical components inside the advanced processors powering AI data centers globally.
Nvidia CEO Jensen Huang said last month that SK Hynix would remain Nvidia’s largest partner, and that the current chip shortage was expected to last several more years.
“As long as there is demand for graphic processors and AI data centers, SK Hynix is indispensable,” said Yoo Hoi-jun, an electrical engineering professor at KAIST.
The HBM market is projected to grow from around $65 billion this year to $120 billion in 2027, and roughly $290 billion by 2030, according to Futurum Equities head of semiconductors Rolf Bulk.
Listing Comes at a Crossroads for Chip Stocks
Semiconductor stocks broadly have lost some steam in recent weeks, with investor concerns around the pace of AI spending growth weighing on the sector.
SK Hynix’s listing is being watched as a test of whether appetite for memory chip companies remains strong. Traders and analysts are treating it as a barometer for the broader AI investment cycle.
“SK Hynix holds the edge in production scale and maturity. Since demand is far outweighing supply, they have had tremendous pricing power,” said Ken Mahoney, CEO of Mahoney Asset Management.
SK Hynix’s market value crossed $1 trillion in its home country in May. Both SK Hynix and Samsung now sit in the rare group of $1 trillion-plus companies alongside Nvidia, Apple, Microsoft, and Alphabet.
The South Korean government unveiled plans in June for over $880 billion in investment in partnership with SK Hynix and Samsung to develop the country’s chip and AI capabilities.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
