SK Hynix raises $26.5B in record Nasdaq debut, but volatility signals selective AI investor appetite

Asian tech firms seeking to follow SK Hynix may find foreign investors more selective

HONG KONG/NEW YORK, July 13 (Reuters) - South Korean chipmaker SK Hynix (000660.KS), opens new tab may have had a rousing $26.5 billion U.S. share sale and market debut last week, but that owed much to its pivotal role in the AI supply chain and timing. Other Asian tech firms are expected to take note and also look to tap foreign investors but they are likely to find appetite for AI-related companies more selective, investors say. Current levels of investor exuberance over AI are going to be hard to maintain as fears grow about the sustainability of AI-driven stock rallies, while chip stocks also tend to be volatile due to the historical boom-and-bust cyclical nature of the industry. "SK Hynix is a special case because it is large, liquid, AI-critical, and hard for many U.S. investors to own directly," said Ophir Gottlieb, CEO of Capital Market ⁠Laboratories. "I'd call this timing for SK about as perfect as possible, but becoming less perfect daily." Giuseppe Sette, co-founder of AI investment analytics platform Reflexivity, agrees, saying he doesn't expect a broad opening of floodgates. SK Hynix, the leading developer of high-bandwidth memory (HBM) in Nvidia processors, "works because it plugs a specific hole in U.S. portfolios -- AI memory -- at peak enthusiasm ... 'me-too' listings without a clear AI or scarcity angle shouldn't assume the same reception", he said. KIOXIA AND DAYONE Relentless investment in artificial intelligence has spurred the Asian tech sector to raise a record $84 billion for the year to July 10, more than triple the amount for the same period in 2025, LSEG data shows. Of that, ADRs and global depositary receipts (GDRs) accounted for $29 billion, an all-time high for that category. The U.S., in particular, offers a wider pool of investors, more liquidity and stronger governance, which tends to result in higher valuations than at home. Companies known to be interested in a similar move to SK Hynix include Japanese memory ⁠chipmaker Kioxia, which has said it's planning an ADR listing as soon as the April-June quarter of 2027. Its shares have surged about sixfold this year on AI demand. Singapore-based data centre operator DayOne, while in talks with a potential buyer, is also planning a U.S.-Singapore dual-listing targeting a valuation of $20 billion, sources with knowledge of the matter have said. DayOne did not immediately respond to a request for comment. There are likely to be a steady stream of others, bankers say. "The current technology fundraising cycle still has considerable runway. We believe the structural drivers ⁠behind AI investment will continue to support healthy capital markets activity over the next two to three years," said James Wang, head of Asia ex-Japan ECM at Goldman Sachs. Aaron Oh, UBS head of ECM for Asia Pacific, said he expects tech fundraising to continue "but faster and larger, and I'd expect Asian issuers to access this cycle earlier than they have ⁠in the past." But even when demand is robust, companies may need to adjust valuation expectations. Taiwan's Unimicron Technology (3037.TW), opens new tab, a printed circuit board maker, raised $1.4 billion last week from a global depositary share issue that was oversubscribed multiple times. The deal was, however, priced near the lower end of a marketed range and at a 5.3% ⁠discount to its closing price on the day. Investors still have appetite for Asian tech issuance, but due to increased volatility they require appropriate pricing and are exercising greater discipline, said Manoj Jain, co-founder and co-CIO of Hong Kong-based hedge fund Maso Capital. Reporting by Kane Wu in Hong Kong and Saqib Ahmed in New York; Additional reporting by Selena Li in Hong Kong and Yantoultra Ngui in Singapore; Editing by Sumeet Chatterjee and Edwina Gibbs Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Kane Wu Thomson Reuters Kane Wu covers M&A, private equity, venture capital and investment banks in Asia. She tracks the region's most high-profile deals, fundraisings as well as investment trends amidst geopolitical, macroeconomic and regulatory changes. She was nominated for a SOPA Excellence in Business Reporting award for coverage of China regulatory crackdown in 2021. Prior to Reuters, she worked at the Wall Street Journal and also wrote about Asia's loan market for Thomson Reuters Basis Point. She is based in Hong Kong.

Global Market: SK Hynix jumps 13% as easing US inflation, AI memory optimism lift chip stocks

South Korean semiconductor shares experienced a significant surge on Wednesday. This rally was fueled by softer U.S. inflation data and renewed AI demand optimism. SK Hynix and Samsung Electronics saw substantial gains in early trading. Analysts foresee strong structural demand from AI applications supporting the memory market. Industry experts predict a severe memory supply shortage extending beyond 2030. Shares of South Korea's SK Hynix surged nearly 13% on Wednesday, leading gains in the country's semiconductor sector after softer-than-expected U.S. inflation data boosted global technology stocks and renewed optimism over artificial intelligence-driven memory demand, Reuters reported. The rally extended across the sector, with Samsung Electronics climbing nearly 8% and chip equipment maker Hanmi Semiconductor advancing about 25% in early trade. US MarketsPowered By As on 15 Jul 2026, 01:30 AM IST S&P 500 Top Gainers CrowdStrike Holdings210.73(12.14%) Goldman Sachs Group1,140(9.00%) Dell Technologies457.54(7.12%) Palo Alto Networks352.89(6.84%) Gainers" S&P 500 Top Losers IBM217.07(-25.21%) Coterra Energy32.56(-8.62%) Biogen191.95(-8.17%) HCA Healthcare363.60(-6.95%) Losers" The gains followed a strong overnight performance on Wall Street, where the S&P 500 and Nasdaq closed higher after cooler-than-expected U.S. inflation data and solid earnings from major banks improved investor sentiment despite ongoing geopolitical tensions in the Middle East. The rebound comes after weeks of volatility in semiconductor stocks, as investors weighed concerns that memory earnings growth could slow with moderating price increases in the second half of 2026. Market participants have also questioned whether softer capital spending by major U.S. cloud providers, higher financing needs and aggressive capacity expansion plans by memory manufacturers could eventually ease the industry's supply-demand imbalance, Reuters said. However, analysts continue to see strong structural demand from AI applications supporting the memory market. According to Reuters, Meritz Securities estimates that DRAM suppliers are currently meeting only about 75% to 80% of demand as shortages intensified in the second half of 2026. The brokerage expects fulfilment rates to deteriorate further in 2027, suggesting supply will remain well below demand even after excluding speculative orders. Reuters also reported that HSBC expects improving profitability of AI services to sustain robust cloud spending, while the industry's shift toward three- to five-year supply agreements should improve earnings visibility and reduce volatility over the next few years. Adding to the positive sentiment, Barclays initiated coverage of SK Hynix's newly listed American Depositary Receipts (ADRs) with an overweight rating and a price target of $330. The ADRs surged nearly 28% to $193.92 on Nasdaq on Tuesday. Goldman Sachs said, according to Reuters, that the recent selloff in South Korean semiconductor stocks had been exacerbated by the unwinding of positions in newly launched exchange-traded funds concentrated in a handful of stocks, even as the underlying semiconductor cycle remained fundamentally strong. Separately, Reuters reported last week that SK Hynix Chief Executive Kwak Noh-jung expects the global memory industry to face its worst-ever supply shortage in 2027, with demand likely to outstrip the company's production capacity well beyond 2030 despite aggressive expansion plans.

Why SK Hynix shares tumbled after a blockbuster Nasdaq debut - Earnings expectations come under scrutiny

Why SK Hynix shares tumbled after a blockbuster Nasdaq debut 1/3 Earnings expectations come under scrutiny The decline was also driven by concerns that shipments of the company's next-generation HBM4 (High Bandwidth Memory) chips may have fallen short of lofty second-quarter expectations. Investors are now closely watching the company's upcoming earnings for clarity on AI memory demand and production trends. 2/3 AI leadership remains intact SK Hynix continues to dominate the AI memory market, supplying advanced HBM chips used in AI servers by customers including Nvidia. The company held the largest share of the global HBM market in the first quarter, reinforcing its position as a key beneficiary of the AI boom despite the recent volatility. 3/3 Long-term story remains strong Analysts said Monday's decline reflected profit-taking rather than a shift in the company's long-term outlook. The capital raised from the Nasdaq listing is expected to support the expansion of AI chip production, while investors continue to view SK Hynix as one of the biggest beneficiaries of rising demand for high-bandwidth memory used in artificial intelligence.

Major AI chip stock SK Hynix plunges after blockbuster $26.5 billion Nasdaq debut

One of the companies powering the global artificial intelligence boom has opened a new door for U.S. investors. SK Hynix, a South Korean semiconductor manufacturer that produces memory chips used in AI servers, smartphones, computers, vehicles, and other electronic devices, made headlines after its Nasdaq debut on July 10, 2026. The company is especially important to the AI industry because it is a leading producer of high-bandwidth memory, or HBM. Those chips sit alongside powerful processors and allow AI systems to move enormous amounts of data quickly. SK Hynix also produces dynamic random-access memory, better known as DRAM, along with NAND flash storage, solid-state drives, and multi-chip packages. Its products reach data centers and everyday consumer devices. This position helped generate intense demand when SK Hynix brought its shares to Nasdaq through a $26.5 billion American depositary receipt offering. But the stock's first few days in the U.S. market have also shown how quickly enthusiasm around AI chips can reverse. SK Hynix stock gives back most of its debut gain SK Hynix priced its U.S. offering at $149 per ADR before the shares began trading on a when-issued basis on July 10. The stock opened at $170, roughly 14% above its offering price, reached $177, and finished its first session at $168.01. However, by midday on July 13, SK Hynix shares fell around 9%, hitting a low of $151.30 and giving back most of its opening-day jump. And the day ended with SK Hynix closing at $139.14. That contrast from a strong debut to a sharp pullback the next trading day captures the debate surrounding SK Hynix. Investors are gaining easier access to a major supplier of the memory chips required for AI. But they are also buying into an industry known for expensive factories, rapid changes in supply and demand, and dramatic swings in memory-chip prices. All of which has a dynamic effect on stock prices, and investors are aware of it. Look at SpaceX, down 14% this past month, and at $137 on Monday, July 13, it has edged closer to its $135 IPO price. Meanwhile, the selling was even more severe in South Korea. SK Hynix's Seoul-listed shares fell more than 15% on July 13 as investors locked in profits following a huge AI-driven rally. The selloff pulled South Korea's Kospi index down about 9% and triggered a temporary marketwide trading halt, Reuters reported. TheStreet Pro's Alex Frew McMillan notes that the listing comes at a "tumultuous" time, "with the bull run in semiconductor stocks looking decidedly toppy, creating very choppy trade." "Any hint of a sale or profit slowdown is punished severely after a record first six months of the year," said McMillan. Bloomberg / Getty Images SK Hynix completes a historic U.S. offering Despite the Monday sell-off, SK Hynix sold 177.9 million ADRs at $149 each, raising about $26.5 billion. Ten ADRs represent one SK Hynix ordinary share. The transaction therefore represented the equivalent of 17.79 million newly issued shares, or about 2.44% of the company's shares outstanding following the offering. Demand was more than seven times the number of shares available, reflecting strong investor interest in a company at the center of the AI memory supply chain. The deal surpassed Alibaba's $25 billion 2014 offering as the largest U.S. stock sale by a company based outside the United States, according to TheStreet Pro. SK Hynix began trading on July 10 under the temporary ticker SKHYV on a when-issued basis. The ticker changed to SKHY when regular-way trading began on July 13, with settlement scheduled for July 14. Although the transaction is being described as an IPO, SK Hynix did not become a publicly traded company for the first time. The business was founded as Hyundai Electronics in 1983 and began its initial public offering process in South Korea in 1996. It joined SK Group and adopted the SK Hynix name in 2012. Its ordinary shares have traded on the Seoul exchange for decades. The 2026 transaction is a U.S. offering of sponsored ADRs intended to raise money for additional factories and equipment. Before the Nasdaq listing, U.S. investors could access unsponsored SK Hynix ADRs over the counter under the ticker HXSCL. But trading volume was limited, and the company was not directly involved in that program. The new sponsored listing should provide stronger trading liquidity and better price discovery, according to McMillan. Analysts see volatility after SK Hynix's hot debut The strong demand did not eliminate concerns that investors might rush to take profits after the shares began trading. TheStreet Pro's James "Rev Shark" DePorre questioned before the debut whether SK Hynix could experience the same "sell-the-news" pressure that followed SpaceX's listing. DePorre noted that SK Hynix's deal was driven more heavily by institutional investors. Baillie Gifford, Coatue Management, and Situational Awareness Partners took roughly one-quarter of the offering. That investor mix could mean fewer traders quickly flipping their allocations, though DePorre said selling pressure could still emerge after initial demand fades. The decline arrived sooner than that thesis suggested. SK Hynix's U.S. shares fell nearly 9% on their first day of regular trading, while the company's South Korean shares suffered an even larger loss. McMillan had also warned investors to expect "intense volatility" because semiconductor trading had become highly leveraged and memory-chip stocks had already posted enormous gains. SK Hynix's Seoul shares had risen almost 359% from the beginning of 2026 through their June 25 record before retreating nearly 27% from that high by July 9. TheStreet Pro analyst also highlighted customer concentration and the possibility that major technology companies could eventually slow spending on AI data centers. Why SK Hynix matters to consumers SK Hynix's business may sound far removed from the average shopper, but memory chips affect the price and performance of many products consumers use daily. DRAM provides the short-term working memory that allows computers, phones, and other devices to run applications and access information quickly. NAND flash stores data after a device is turned off and is used in smartphones, tablets, solid-state drives, and other electronics. SK Hynix also manufactures complementary metal-oxide semiconductor image sensors, or CIS products. Those sensors can be used in smartphones, laptops, medical devices, digital cameras, vehicles, security systems, gaming consoles, and home appliances. The company's HBM products are more directly tied to data centers, but the consequences of the AI spending boom can spread throughout the electronics industry. AI companies and cloud providers have been buying large quantities of advanced memory, tightening supply and driving up prices. McMillan noted that elevated chip costs were already moving through the production chain and contributing to higher prices for products such as Microsoft's Xbox Series X and Sony's PlayStation 5 at a point in their life cycles when consoles would typically be discounted. For consumers, SK Hynix's expansion could eventually help ease memory shortages by adding new production. But those factories take years and billions of dollars to complete. In the meantime, strong demand for AI infrastructure can keep memory prices elevated, potentially increasing costs for PCs, smartphones, gaming systems, and other devices. SK Hynix has also become one of the biggest winners from the rapid expansion of AI data centers. The company held about 58% of the global HBM market by revenue and 29% of DRAM share during the first quarter of 2026, according to Counterpoint Research. The bullish case is that spending on AI servers will continue to grow, keeping demand for HBM and advanced DRAM ahead of available supply. The stock's opening-day surge showed how eager investors were to make that bet. But its sharp decline the next day also shows how quickly they can reconsider it. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published July 13, 2026 at 10:03 PM.

Wall Street emerges as tool to draw Korean AI investment to US - The Korea Times

SK Group Chairman Chey Tae-won, front row center, celebrates SK hynix's Nasdaq listing in New York, Friday (local time). Yonhap SK hynix's Nasdaq listing signals a shift in Washington's strategy to attract Korean investment. Under the former Joe Biden administration, U.S. industrial policy centered on incentives, such as the CHIPS and Science Act, offering billions of dollars in subsidies to attract semiconductor manufacturing to the U.S. While the strategy succeeded in drawing large-scale investments from global chipmakers, including Samsung Electronics and SK hynix, it also placed considerable financial pressure on companies to commit massive capital expenditures before realizing returns. The recent Nasdaq debut of SK hynix, however, suggests that the U.S. is adding a new dimension to its strategy. By providing Korean companies with direct access to the world's largest capital market and a broad base of artificial intelligence (AI)-focused investors, Washington is increasingly creating an environment in which expanding U.S. operations becomes a commercially attractive decision rather than one driven solely by political or policy pressure. As global demand for AI infrastructure continues to accelerate, investors have rewarded companies positioned at the center of the AI supply chain with premium valuations, allowing firms such as SK hynix, to secure funding under more favorable conditions while simultaneously strengthening their presence in the U.S. The company's Nasdaq listing was met with strong investor demand, underscoring Wall Street's appetite for AI-related semiconductor stocks. Shortly after the listing, SK Group Chairman Chey Tae-won also signaled plans to expand SK Group's investment in the United States, saying the company has already invested more than $35 billion and is considering significantly larger commitments. "SK is already investing more than $35 billion in the U.S. side ... My plan is that much bigger number," he said during an interview with Bloomberg TV following the listing. Industry officials said the evolving approach reflects a meaningful shift in Washington's trade and industrial strategy. Rather than relying exclusively on subsidies or diplomatic and trade pressure to force overseas manufacturers to build facilities in America, the U.S. is moving to combine industrial policy with the financing power of Wall Street to reinforce its AI ecosystem and semiconductor supply chain. The SK hynix case has also raised the possibility that more Korean companies could consider listings on U.S. exchanges, particularly as American investors continue to assign higher valuations to businesses tied to AI and advanced semiconductor technologies. Despite growing interest, however, industry officials believe the number of potential candidates remains limited in the near term. "Among other major Korean manufacturers, companies such as Hyundai Motor and LG Energy Solution are grappling with slowing demand in their respective industries, making additional overseas listings difficult to justify under current market conditions," an industry official said. "Raising fresh equity through a U.S. listing would also be less compelling without a strong growth narrative capable of attracting global investors." Samsung Electronics presents a case in contrast. Unlike SK hynix, the world's largest memory chipmaker maintains one of the strongest cash positions among global technology companies, reducing the need to raise capital through new share offerings. With ample financial resources to fund future investments independently, Samsung has little incentive to immediately pursue a Nasdaq listing simply as a financing tool.

Why SK Hynix shares tumbled after a blockbuster Nasdaq debut - Seoul shares reverse course

Why SK Hynix shares tumbled after a blockbuster Nasdaq debut 1/4 Seoul shares reverse course Despite the stellar U.S. debut, SK Hynix shares fell sharply in Seoul on Monday, dropping as much as 8% during trading. Investors booked profits after the recent rally, while broader weakness across Asian technology stocks added to the selling pressure. 2/4 Earnings expectations come under scrutiny The decline was also driven by concerns that shipments of the company's next-generation HBM4 (High Bandwidth Memory) chips may have fallen short of lofty second-quarter expectations. Investors are now closely watching the company's upcoming earnings for clarity on AI memory demand and production trends. 3/4 AI leadership remains intact SK Hynix continues to dominate the AI memory market, supplying advanced HBM chips used in AI servers by customers including Nvidia. The company held the largest share of the global HBM market in the first quarter, reinforcing its position as a key beneficiary of the AI boom despite the recent volatility. 4/4 Long-term story remains strong Analysts said Monday's decline reflected profit-taking rather than a shift in the company's long-term outlook. The capital raised from the Nasdaq listing is expected to support the expansion of AI chip production, while investors continue to view SK Hynix as one of the biggest beneficiaries of rising demand for high-bandwidth memory used in artificial intelligence.

SK Hynix plunges after Nasdaq debut amid profit-taking, diminishing earnings optimism

SEOUL, July 13 (Reuters) - SK Hynix shares fell more than 15% in trading on Monday, its biggest one-day decline on record, as investors in Seoul cashed out of a scorching share price rally following its Nasdaq debut last week. The declines in SK Hynix's shares, alongside those of rival chipmaker Samsung Electronics, contributed to a 9% plunge in the Kospi, triggering a 20-minute trading halt. Korean stocks extended losses after trading resumed, even as President Lee Jae Myung said on Monday his administration would channel government support into three major projects in chips, artificial intelligence data centres and physical AI. The world's leading AI memory chipmaker, SK Hynix, raised over $26 billion last week selling American Depositary Receipts priced at $149 each, after its Korean shares more than tripled this year. The ADRs opened 14% above the offer price at $170 before ending their first trading day with a 12.8% gain. "The current memory upcycle is tracking substantially stronger than expected, but our base case continues to assume normalisation in cycle dynamics, limiting upside at current levels," said Lorraine Tan, a director at Morningstar, who values the company at $160 per ADR. "Despite accelerating artificial intelligence adoption, monetisation remains uncertain and profitability for key players, such as OpenAI, appears to be under pressure," she said. "Funding is also shifting toward debt or equity, raising concerns about the maintainability of current spending levels." Volatility in SK Hynix shares has surged this year as it has become a target of global investors betting on a sustained boost to profits from a shortage of high-bandwidth memory chips used in AI data centres, with many investors using leveraged exchange-traded funds that have amplified returns and losses. In Hong Kong, a single-stock ETF tracking SK Hynix offered by fund manager CSOP, which uses leverage to target twice the daily returns of its shares, lost more than a third of its value on Monday, its biggest one-day decline since listing in October. After the rout in the Seoul market on Monday, SK Hynix's U.S. ADRs, which represent one-tenth of a share and closed at $168 on Friday, were left trading at about a 37% premium to its South Korean share price. "Companies with both U.S. and home-market listings often trade at a premium in the U.S., benefiting from broader investor access, deeper liquidity and stronger valuation support," said James Ooi, a market strategist at Tiger Brokers in Singapore. Arbitrage is limited by hurdles in converting Korean shares to ADRs, he added. Ryu Young-ho, a senior analyst at NH Investment & Securities, said investors were profit-taking after the conclusion of the U.S. listing, while sentiment also suffered from caution with regard to SK Hynix's second-quarter earnings. He said investors had expected shipments of SK Hynix's HBM4 chips to increase from the second quarter, but that the increase does not appear to have materialised at scale. Ryu also said investors had moderated earnings expectations because SK Hynix, with its greater exposure to the HBM market than crosstown rival Samsung Electronics, was set to benefit less from a recent rise in prices for conventional DRAM chips. SK Hynix led the market for high-bandwidth memory chips with a 58% revenue share in the first quarter, whereas Samsung and U.S. competitor Micron Technology each held 21%, Counterpoint Research data showed. HBM chips are primarily used in artificial intelligence systems for customers such as Nvidia and Alphabet's Google. (Reporting by Heekyong Yang and Gregor Stuart Hunter; Editing by Jacqueline Wong, Christopher Cushing and Michael Perry) By Heekyong Yang and Gregor Stuart Hunter