SK Hynix has raised about US$26.5 billion after pricing its American Depositary Receipts (ADRs) at US$149 each ahead of its Nasdaq debut, underscoring strong investor demand for one of the world’s leading suppliers of artificial intelligence (AI) memory chips.
The South Korean chipmaker’s ADRs will begin trading on Friday under the ticker symbol SKHY, with the proceeds earmarked for new factories and equipment to support rising demand for AI chips.
Investor appetite proved robust, with the offering reportedly more than seven times oversubscribed, reflecting confidence in SK Hynix’s dominant position in the high-bandwidth memory (HBM) market, a critical component used in advanced AI processors.
The US listing is also expected to narrow the company’s valuation gap with US rival Micron by giving SK Hynix greater access to global investors. Micron currently trades at a forward price-to-earnings ratio of 6.66 times compared with SK Hynix’s 5.5 times.
The company has emerged as a key beneficiary of the AI boom through its long-standing investment in HBM technology, with Nvidia chief executive Jensen Huang recently reaffirming that SK Hynix would remain the AI chipmaker’s largest memory partner amid an ongoing supply shortage.
Although SK Hynix shares have retreated by around 25% over the past two weeks, the stock remains up 680% over the past year, driven by surging earnings as demand for AI infrastructure continues to accelerate.
Analysts said the company’s first-mover advantage in HBM technology and strong pricing power continue to position it at the centre of the global AI supply chain, even as it competes with domestic rival Samsung Electronics for leadership in the memory chip market.
Reuters
