SK Hynix’s $29 billion Nasdaq listing tests AI stock demand

SK Hynix is set to bring a roughly $29 billion share offering to the Nasdaq this week, giving investors a new way to buy into the artificial intelligence chip trade. Fortune reported that the listing is expected to begin trading Friday and could become the largest first-time share sale by a foreign company.

The South Korean memory-chip maker has become one of the most closely watched suppliers in the AI supply chain, according to Fortune. Its Korea-listed stock has risen 770% over the past 12 months, Fortune reported, even after falling 20% from a June peak.

Fortune reported that the offering will test whether investors still want to fund companies tied to the AI buildout after sharp gains across the sector. The company is not part of the group of large U.S. tech stocks known as the Magnificent 7, but its rally has placed it among the standout AI-linked market moves of the past year.

AI memory demand drives the rally

SK Hynix has benefited from demand for high-bandwidth memory, a type of chip used in AI systems, Fortune reported. The company is the leading supplier of that memory category and has become Nvidia’s preferred provider, according to Fortune.

Other memory-chip companies have also surged as investors bet on AI infrastructure. Micron Technology’s shares climbed 700% over the same 12-month period, Fortune reported, trailing SK Hynix’s gain but showing the broader strength in the memory-chip trade.

Fortune described memory-chip makers as key suppliers for AI agents, a part of the market that has helped support investor enthusiasm. The Nasdaq listing will show whether that enthusiasm extends to a large new U.S. offering from a company already listed in South Korea.

Korean stocks have surged with chipmakers

The move comes during a strong year for South Korean equities. Fortune reported that the KOSPI index has gained 87% so far this year, with SK Hynix heavily represented in the index’s market value.

Samsung and SK Hynix together account for about half of the KOSPI, according to Fortune. That concentration has made the broader South Korean market especially sensitive to investor views on the two chipmakers.

Deutsche Bank said in a July 3 chartbook that Samsung and SK Hynix had driven a sharp recovery in the index after a long period of weak performance. “Samsung and SK Hynix helped the KOSPI triple over the past year after 17 years of doing nothing, even if some air has escaped from the balloon in recent days,” Deutsche Bank said.

The bank also said the two companies’ combined market value remained about 16 times larger than that of the third-biggest company in the KOSPI. That scale helps explain why SK Hynix’s Nasdaq debut is being watched beyond the company itself, Fortune reported.

For U.S. investors, the listing puts a major AI hardware supplier directly onto a U.S. exchange at a time when the durability of the AI stock rally is under review. Fortune reported that the size of the offering and SK Hynix’s recent share-price surge make the deal a gauge of demand for AI-linked companies.

This story draws on original reporting from Fortune.