The South Korean memory-chip giant SK Hynix (SKHYV) made a strong entrance on U.S. exchanges, with its shares jumping about 13% on the first day of trading, as quoted on Yahoo Finance. The stock climbed to $168 after pricing its American depositary receipts (ADRs) at $149 apiece.
The company raised approximately $26.5 billion through the offering, making it the largest U.S. IPO ever by a foreign company, according to Bloomberg data, as mentioned on Yahoo Finance. Shares were up about 2.5% after hours on July 10, 2026.
Record-Breaking IPO Draws Robust Investor Demand
The offering included 177.9 million ADRs, with each ADR representing one-tenth of a common share, equivalent to 17.79 million common shares. Reuters reported that investor demand surpassed the available shares by roughly seven times, the same source revealed.
The ADRs traded under the ticker SKHYV on Friday before transitioning to the permanent Nasdaq ticker SKHY starting Monday.
AI Boom Fuels Memory Chip Demand
SK Hynix is benefiting from explosive demand for high-bandwidth memory (HBM) and advanced storage chips, both of which are essential for artificial intelligence (AI) infrastructure. The rapid expansion of AI data centers has created a global shortage of memory products, affecting industries ranging from cloud computing to consumer electronics.
As one of NVIDIA's key suppliers, SK Hynix is expanding manufacturing capacity to meet rising demand driven by the global AI investment cycle.
HBM Gives SK Hynix a Competitive Edge
Unlike conventional storage, HBM sits close to AI processors and stores the most frequently accessed data, enabling significantly faster processing speeds. This technology is critical for powering AI workloads, as graphics processing units (GPUs) do not need constant access to an entire AI model.
According to the company's SEC filing, SK Hynix currently commands a 56.4% share of the HBM market. Along with Micron and Samsung, it is one of only three major producers of HBM, per the same Yahoo Finance source.
U.S. Listing Broadens Investor Access
The Nasdaq listing makes SK Hynix shares significantly easier for U.S. investors to own, particularly retail investors and smaller institutional funds. Previously, investing in SK Hynix largely required purchasing shares listed on the Korea Exchange.
The company may be eligible for inclusion in the PHLX Semiconductor Sector Index. The company's Korean-listed stock has delivered exceptional returns, surging 174% over the past six months and 634% over the past year.
Proceeds to Expand Manufacturing Capacity
SK Hynix intends to use the proceeds from the ADR sale to accelerate semiconductor production capacity in South Korea. The funds will primarily support the construction of new chip manufacturing facilities.
Supply Constraints Could Persist for Years
Industry analysts expect tight supply conditions to continue through the end of the decade, as building new semiconductor fabrication facilities requires significant capital and several years to complete. To secure future supply, memory manufacturers are increasingly signing long-term agreements with customers.
Inside the Valuation Comparison
SK Hynix (000660.KS) currently has a trailing twelve-month (TTM) price/earnings (P/E) ratio of 20.64X, while its forward P/E ratio stands at 7.46X, per Yahoo Finance data. In contrast, its competitor Micron Technology (MU) trades at a P/E (TTM) of 22.42X. MU shares currently trade at a forward 12-month price-to-earnings (P/E) multiple of just 6.40X.
ETFs to Gain
Against the above-mentioned backdrop, iShares Semiconductor ETF SOXX could be closely followed as the fund receive SK Hynix in its kitty over the medium term. Apart from chip ETFs like SOXX and VanEck Semiconductor ETF SMH, the Nasdaq-100 ETF Invesco QQQ ETF QQQ will likely be a key beneficiary.
Another recent high-profile IPO – SpaceX – also entered the Nasdaq 100 index lately. The next candidate could be SK Hynix. The Nasdaq has recently introduced a fast-track framework for newly public companies. The updated rules allow certain large IPOs to qualify for the Nasdaq-100 after only 15 trading days (read: SpaceX Set for Rapid Entry into Nasdaq-100: ETFs in Focus).
And, who can forget South Korea ETFs? SK Hynix takes the top position in iShares MSCI South Korea ETF EWY So, no wonder, the U.S. market entry of the company will leave a solid impact on EWY (read: Top-Performing ETF Areas of 1H 2026).
The IPO also puts focus on Renaissance IPO ETF IPO. Each quarter, the ETF is rebalanced as new IPOs are included and older members cycle out three years after their IPO. Constituents are weighted by float-adjusted market capitalization with a cap imposed on any weightings exceeding 10%.
Then comes First Trust US Equity Opportunities ETF FPX, which follows a rules-based value-weighted index measuring the average performance of U.S. IPOs during their first 1,000 trading days.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco QQQ (QQQ): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
iShares Semiconductor ETF (SOXX): ETF Research Reports
Renaissance IPO ETF (IPO): ETF Research Reports
First Trust US Equity Opportunities ETF (FPX): ETF Research Reports
iShares MSCI South Korea ETF (EWY): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).