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South Korean chipmaker SK Hynix saw its shares surge 11 per cent on Thursday after unveiling plans to raise up to $29.4 billion through a Nasdaq listing, as investors bet the artificial intelligence (AI) boom could unlock even higher valuations for the company in the United States.
The memory-chip giant said it plans to issue 17.79 million new shares in the form of American Depositary Receipts (ADRs), potentially raising 45.45 trillion won ($29.4 billion) in what could become one of the largest stock offerings in history.
The announcement triggered a sharp rally in Seoul, with investors welcoming the prospect of SK Hynix gaining direct access to US capital markets, where AI-linked companies often command richer valuations than their Asian counterparts.
Why investors are excited
The 11 per cent jump reflects more than enthusiasm for a large fundraising exercise. Investors see the Nasdaq listing as a chance for SK Hynix to be valued alongside American semiconductor firms that have benefited enormously from the AI revolution.
Analysts say the move could narrow the valuation gap between SK Hynix and rivals such as Micron Technology, whose shares trade directly in the US market.
That expectation is already being reflected in the company’s South Korea-listed shares.
The planned ADR listing is expected to begin trading on July 10, although the timeline remains subject to regulatory approvals and market conditions.
Riding the AI wave
Few companies have benefited more from the AI boom than SK Hynix.
The company is a leading supplier of high-bandwidth memory (HBM) chips, a critical component used in advanced AI systems developed by companies such as Nvidia and Google. These specialised memory chips help AI processors handle vast amounts of data at high speeds.
As technology giants race to build AI infrastructure, demand for HBM chips has surged, turning SK Hynix into one of the biggest winners of the AI era.
Its shares have quadrupled this year, outpacing both South Korea’s Samsung Electronics and US-based Micron Technology.
Earlier this week, SK Hynix
overtook Samsung Electronics to become South Korea’s most valuable listed company, a symbolic shift in a country where Samsung has long dominated the corporate landscape.
One of the biggest listings ever
If priced at the upper end of the proposed range, SK Hynix’s offering would rank among the largest share sales ever completed globally.
The deal would come behind only SpaceX’s record-breaking $85.7 billion offering earlier this month and would surpass the landmark listings of Saudi Aramco in 2019 and Alibaba in 2014.
The scale of the transaction highlights the extraordinary investor appetite for companies positioned at the centre of the AI ecosystem.
It also reflects the enormous sums required to build the infrastructure supporting the next generation of artificial intelligence technologies.
Funding the next phase of growth
SK Hynix said proceeds from the offering will be used to expand production capacity and strengthen its technological leadership.
The company is developing a massive semiconductor cluster in Yongin, South Korea, scheduled to begin operations in 2027. It is also building its first US manufacturing facility, a $4 billion advanced chip-packaging plant in Indiana.
Part of the capital raised will also be used to purchase advanced chipmaking equipment, including extreme ultraviolet (EUV) lithography systems produced by Dutch semiconductor equipment giant ASML.
Such machines are considered essential for manufacturing cutting-edge chips used in AI applications.
From survivor to AI champion
The planned Nasdaq debut marks another milestone in SK Hynix’s remarkable turnaround story.
More than two decades ago, the company struggled under a heavy debt burden and faced questions about its survival. Today, it sits at the heart of the global AI supply chain and has become one of the world’s most valuable semiconductor companies.
The AI boom has transformed the company’s fortunes. After reporting a 7.73 trillion won operating loss in 2023 amid a downturn in memory-chip markets, SK Hynix rebounded sharply as AI-related demand accelerated.
The company posted a record operating profit of 23.5 trillion won in 2024, underscoring the scale of the industry’s recovery.
A test of AI investor appetite
The offering comes as investors continue to pour money into AI-related assets despite growing volatility across technology markets.
Major technology companies are spending aggressively on AI infrastructure, while firms across the semiconductor ecosystem are racing to secure capital for expansion.
For SK Hynix, the Nasdaq listing is about more than raising money. It is also an attempt to cement its status as a global AI leader and gain greater recognition among international investors.
“We expect to elevate our status as a global company by broadening our touchpoints in the United States, the epicentre of AI technological innovation,” the company said.
The offering is being managed by Bank of America Securities, Citigroup Global Markets, Goldman Sachs and JPMorgan Securities.
With inputs from agencies.
