SK Hynix is preparing to offer American depositary receipts (ADRs) to U.S. investors, with each ADR representing a tenth of a common share. Pricing is expected on Thursday, with trading to begin Friday. Based on SK Hynix's closing share price last Friday in Seoul, the offering could raise around $28 billion, according to Bloomberg.
The company is benefiting from an AI-fueled demand surge for memory chips. SK Hynix reported first-quarter revenues up nearly 200% over the same quarter last year, and its stock is up about 260% so far this year. The boom stems from AI systems' heavy memory needs: as hyperscalers like Amazon, Microsoft, Google, and Oracle race to build AI data centers, demand for high-bandwidth memory (HBM), DRAM, and NAND has outpaced supply, a situation dubbed "RAMageddon." Apple executives have said the shortage is forcing it to raise prices on Macs and iPads.
South Korean tech companies, led by SK Hynix and Samsung, have pledged to spend over $550 billion on new manufacturing capacity. Analysts note the gamble carries risk, since memory needs for AI could shift by the time new facilities come online, potentially leaving excess supply. In the meantime, Wall Street is treating memory chipmakers as among the closest alternatives to Nvidia; Micron, the closest U.S. peer, has risen nearly 700% over the past year to a more than $1 trillion valuation.