SK hynix Inc shares jumped in their debut on the United States stock market as the South Korean memory chip maker tapped into continued investor enthusiasm for artificial intelligence (AI) companies.
In one of the largest foreign share offerings in U.S. market history, the American depositary receipts (ADRs) of SK Hynix rose 13% on their first day of trading on Friday (Saturday AEST) on the NASDAQ market after the company raised US$26.5 billion from investors.
The strong initial market performance demonstrates the demand for companies positioned to benefit from the rapid expansion of AI infrastructure and was despite recent weakness in semiconductor stocks.
SK hynix’s ADRs (NASDAQ: SKHYV) closed at $168.01, up $19.01 (12.76%) from the $149 offer price, and capitalising the company at US$1.15 trillion (A$1.65 trillion).
“I’d like to thank our investors and customers for their trust and support,” Chief Executive O Kwak Noh-Jung said in a news release.
“Through continuous innovation, we will push the boundaries of what memory can achieve while empowering our employees to reach even greater accomplishments.”
The offering was heavily oversubscribed, reflecting strong appetite from global investors seeking exposure to the AI hardware boom.
The company’s stock in Seoul has surged 634% over the last year due to euphoria around AI, according to this AP story.
SK hynix is the world’s largest producer of high-bandwidth memory chips, which are essential components in the powerful graphics processing units developed by companies including Nvidia and AMD to train and operate advanced AI models.
The company has emerged as one of the biggest beneficiaries of the AI infrastructure boom, with technology giants committing hundreds of billions of dollars to expand computing capacity.
The listing gives SK hynix direct access to the world’s largest pool of equity investors and provides funding to expand manufacturing capacity as demand rises for advanced memory chips used in artificial intelligence systems.
“Global semiconductors is the most crowded trade in the world right now,” Great Hill Capital Chairman Thomas Hayes was quoted in this Reuters article.
