SK Hynix Nasdaq plan targets US demand for AI chip stocks
The South Korean memory maker’s planned $29 billion US listing could broaden access for investors chasing AI-related semiconductor gains.
By Maya Lindqvist · Senior Technology Correspondent
3 min read
SK Hynix is preparing a $29 billion listing in the United States that would give American investors a more direct way to buy into the AI memory-chip trade. Bloomberg reported that the Nasdaq listing, expected July 10, may be the largest first-time share sale by a foreign company.
The South Korean semiconductor maker is a major supplier of high-bandwidth memory, a key component in AI data-center systems. Bloomberg reported that the offering is aimed at more than raising funds: it could help SK Hynix reduce a valuation gap with Micron Technology, its US-based rival.
American access to SK Hynix has been limited, according to Bloomberg. Investors could buy the company’s Seoul-listed shares, which trade outside US market hours, or use unsponsored over-the-counter American depositary receipts that Bloomberg said have had weak liquidity and have lagged the Korean shares.
Daniel Morgan, senior portfolio manager at Synovus Trust Co., told Bloomberg that investor interest in chip stocks is running high and that the timing favors bringing US investors into the shares. Synovus owns Micron stock, according to Bloomberg.
Micron has gained 242% this year and is the second-best performer in the S&P 500, Bloomberg reported. Over the past 12 months, SK Hynix’s Korean shares and Micron have each risen about 700%, lifting both companies’ market values above $1 trillion, according to Bloomberg.
Other memory and storage stocks have also surged. Bloomberg reported that Sandisk has risen 3,676% over the past year, Western Digital is up 719%, and Seagate Technology has climbed 449%. The Philadelphia Stock Exchange Semiconductor Index has advanced 125% over that period and just posted its strongest quarter on record, according to Bloomberg.
SK Hynix trades at 6.2 times estimated earnings over the next 12 months, compared with Micron at 7 times, Bloomberg reported. Micron’s multiple had been above 11 as recently as June 22 before the stock fell 14% last week, its worst week since March, according to Bloomberg.
Di Zhou, a portfolio manager at Thornburg Investment Management, told Bloomberg the US listing is aimed at investors who do not have access to Korean equities. Thornburg owns SK Hynix shares, according to Bloomberg.
Forecasts cited by Bloomberg show why investors are focused on the company. SK Hynix is projected to earn 221 trillion won, or $144 billion, in net income in 2026 on sales of 355 trillion won, or $231 billion. That would be up 415% and 265%, respectively, from 2025, according to Bloomberg.
Micron is expected to report an 876% increase in net income to about $83 billion in its fiscal year ending Aug. 31, with sales rising 247% to $130 billion, Bloomberg reported.
The boom carries risks. Ed O’Gorman, chief executive officer at River Wealth Advisors, told Bloomberg that investors could be buying into a speculative bubble after such steep share-price gains.
Bloomberg reported that major technology companies including Alphabet and Microsoft are increasingly using debt and equity markets to finance AI-related spending that has boosted demand for memory chips. If that spending slows, Bloomberg reported, the outlook for chipmakers could change quickly.
SK Hynix also plans to spend hundreds of billions of dollars on two production plants in South Korea, as does Samsung Electronics, Bloomberg reported. The listing will help fund those commitments, but Bloomberg noted that added capacity could worsen a future oversupply if demand weakens.
Investors are also watching whether SK Hynix can enter US equity indexes. Bloomberg reported that inclusion in the Nasdaq 100 could trigger buying from passive funds such as the Invesco QQQ Trust, which tracks that index and has $482 billion in assets.
Brendan Ahern, chief investment officer of KraneShares, told Bloomberg that price differences between the Nasdaq-listed ADRs and the Seoul shares could draw arbitrage traders and improve liquidity. Bloomberg said it remains unclear whether investors will be able to freely exchange the ADRs for Korean shares, a detail that could affect whether any premium or discount persists.
This story draws on original reporting from Fortune.