SK Hynix's US Stock Debut Soars 12.8% as AI-Driven Chip Demand Surges
The memory-chip maker priced 177.9 million ADRs at $149 each as institutions chased AI exposure, with demand running more than seven times oversubscribed.
- On Friday, South Korean chipmaker SK Hynix debuted on the Nasdaq, raising $26.5 billion in the largest-ever U.S. share sale by a foreign company with demand running seven times oversubscribed.
- Analysts suggest the listing aims to broaden SK Hynix's investor base and improve liquidity while reducing valuation gaps against Micron Technology, the U.S. chip manufacturer.
- The memory-chip giant priced 177.9 million American Depositary Receipts at $149 each; shares surged over their offer price, closing up almost 13 per cent on Friday.
- Josh Sheluk, portfolio manager at Verecan Capital Management, warned that "insatiable" hype around SK Hynix is "usually a recipe for disappointment" as an investor.
- Semiconductor stocks face volatility, with the Philadelphia Semiconductor Index shedding more than 11 per cent since late June, as Garnet Anderson, president of Tacita Capital, expects AI growth over an "elongated period.
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26 Articles
SK Hynix shares jump in marquee US debut as AI euphoria persists
SK Hynix's Nasdaq debut saw its shares jump significantly after a large share sale. This event signals strong investor enthusiasm for chip stocks amid the AI revolution. The company's offering was oversubscribed, meeting strong demand for AI-memory themes. SK Hynix is a leading maker of essential high-bandwidth memory chips for AI. This listing aims to close valuation gaps and provide access to a larger investor pool.
Chey Tae-won: "Memory production plant also possible"… Hinting at expanded investment immediately after Rutnick pressure. AI supply chain restructuring… Possibility of hundreds of trillions of won in investment in the U.S. Amid intensifying pressure from the U.S. government on investment, SK Hynix, which successfully listed on the NASDAQ, [plans] to expand its semiconductor business in the U.S.
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