SK Hynix (SKHY) just gave Wall Street one of the clearest signs yet that the artificial intelligence boom has real staying power.
The South Korean memory chipmaker, the world's top supplier of high-bandwidth memory chips used in AI systems, raised $26.5 billion last week through a U.S. share sale. It is the third-largest first-time listing in U.S. history, according to data compiled by Bloomberg.
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SK Hynix Stock Jumps on Record-Breaking Nasdaq Debut
SK Hynix's American depositary receipts, trading under the new SKHY ticker, closed their first trading session Friday at $168.01. That is a 13% gain from the $149 price set the night before, though it slipped from the $170 opening price.
According to Bloomberg:
More than 106 million ADRs changed hands on day one. The offering itself was more than seven times oversubscribed. Nearly half the shares were allocated to the 10 largest orders out of nearly $200 billion in total demand."Today is a very proud day, and today is a truly historic day for SK Hynix," CEO Kwak Noh Jung said while ringing the Nasdaq opening bell, according to Bloomberg News. "HBM stands at the heart of the AI revolution."
Bank of America, Citigroup, Goldman Sachs, and J.P. Morgan Chase led the offering, with nine other firms taking part. The mechanics behind the offering show just how much appetite there was for the chip stock.
The company sold 177.9 million ADRs at $149 apiece, with each ADR representing one-tenth of a Seoul-traded common share. That pricing put SKHY stock at roughly a 3% premium to Thursday's closing price for the ordinary shares in Korea, based on Bloomberg calculations. A small premium might look modest given how wild the stock's swings have been, but analysts said it actually signaled confidence rather than caution.
www.barchart.com The Chip Stock Benefits From Strong Demand
High-bandwidth memory chips work alongside processors from companies like Nvidia (NVDA) to power AI models. Demand for these chips has outpaced supply for so long that shortages are now pushing up prices on everyday electronics, from iPads to Xbox consoles.
Kwak told Bloomberg he expects that memory deficit to stretch beyond 2030. Customers are locking in multiyear supply agreements because they believe the shortage will not end in the near term.
SK Hynix posted a loss of about 9.1 trillion won in 2023. By the first quarter of 2026, it reported a profit of roughly $26.5 billion, or 40.3 trillion won, according to company financial filings. Revenue for that single quarter came in around $34.5 billion, nearly matching what the company earned in all of 2024.
SK Group Chairman Chey Tae Won told Bloomberg Television that supply and demand may not fully normalize until artificial general intelligence arrives. "Until then, we need a lot of memory," he said.
SK Hynix plans to use the IPO proceeds to expand factory capacity and purchase extreme ultraviolet lithography equipment, its filings show, as it and rival Samsung Electronics prepare to pour money into a South Korean government-backed initiative worth $880 billion.
What Next for SKHY Stock
Investors, including Michael Burry and Bridgewater founder Ray Dalio, have warned of an AI bubble, and even top AI developers have yet to prove their tools generate consistent profits.
Analysts tracking SK Hynix forecast revenue to increase from $67.91 billion in 2025 to $388 billion in 2028. In this period, adjusted earnings are projected to expand from $42.14 to $322.
If SKHY stock is priced at 10x forward earnings, it could more than double within the next 18 months.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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