SK Hynix’s shares made a strong debut on the Nasdaq, rising 13% after the South Korean semiconductor giant raised $26.5 billion through a share offering.
The successful listing signals continued investor confidence in artificial intelligence (AI)-related chip companies despite recent concerns over the sustainability of the AI investment boom.
SK Hynix, South Korea’s second-most valuable company, has emerged as one of the biggest beneficiaries of the global AI expansion.
The rapid adoption of AI technologies has triggered massive investments by technology companies in advanced computing infrastructure, creating strong demand for high-performance semiconductor components.
The company’s American depositary receipts (ADRs) opened at $170 per share, significantly above the offer price of $149. Each ADR represents 10 common shares of SK Hynix.
The offering price was set at a 2.7% premium to the company’s average trading price on the Seoul exchange over the previous three sessions.
The Nasdaq debut marks one of the largest US equity offerings in recent years and follows SpaceX’s record-breaking IPO last month.
The share sale is expected to provide SK Hynix with additional capital to expand manufacturing capacity, including the construction of new semiconductor facilities.
The offering also gives the company direct access to a broader global investor base, particularly in the world’s largest capital market.
Investor demand for the offering was strong, with the issue receiving subscriptions of more than seven times the shares available, according to sources familiar with the matter.
The listing comes at a time when semiconductor stocks have experienced some volatility after a prolonged rally. Investors have become more cautious about whether the pace of AI-related spending can continue at current levels.
SK Hynix’s Seoul-listed shares have declined about 25% from their recent record high, although the stock remains around 630% higher compared with a year ago.
SK Hynix has benefited from growing demand for high-bandwidth memory (HBM) chips, which are essential components for advanced AI processors. Major technology companies have increased spending on AI infrastructure, creating supply constraints and boosting prices for specialised memory products.
The company is viewed by investors as a key supplier powering the AI revolution, similar to other semiconductor firms that provide the essential hardware needed for next-generation computing.
US-based rival Micron has also gained significantly from the AI boom, with its shares rising sharply over the past year. Analysts believe SK Hynix’s Nasdaq listing could help reduce the valuation gap between the two companies by improving global investor access and increasing market visibility.
Despite its leadership position in HBM technology, SK Hynix currently trades at a lower valuation compared with Micron, with its forward price-to-earnings multiple standing at about 5.8 times versus Micron’s around 7 times.
