SK Hynix enters US stock market capitalizing on AI boom

South Korean semiconductor giant SK Hynix is planning to list its shares on the US stock exchange. Amid growing global demand for AI technologies, the company aims to further increase its capitalization through this move. This decision was made against the backdrop of major shifts in the tech world and unprecedented demand for memory chips. This is reported by Techcrunch.com reports .

According to Bloomberg, SK Hynix announced on Monday its intention to sell approximately 17.8 million shares in the US via an IPO. If the sale is successful, the company is expected to raise about $28 billion. Investors will be able to own SK Hynix shares through American Depositary Receipts (ADRs) rather than trading directly on a foreign exchange. Each ADR will represent one-tenth of an ordinary share.

The era of AI and "RAMageddon"

Currently, global demand for High Bandwidth Memory (HBM), DRAM, and NAND chips—essential for running AI systems—far exceeds supply. Experts are calling this situation "RAMageddon." As tech giants like Amazon, Microsoft, Google, and Oracle expand their AI data centers, a shortage of memory chips has emerged.

This shortage is felt not only at the industrial level but also by ordinary consumers. For instance, Apple management stated that they are being forced to increase prices for Mac computers and iPad tablets due to chip scarcity. SK Hynix aims to fill this gap and strengthen its market share.

Financial performance and risky investments

The current year has been exceptionally successful for SK Hynix. The company's first-quarter revenue grew by nearly 200 percent compared to the same period last year, and its share price has risen by 260 percent since the beginning of the year. For comparison, shares of its closest US competitor, Micron, grew by 700 percent over the past year, with the company's value exceeding $1 trillion.

South Korean tech companies, particularly SK Hynix and Samsung, have pledged to spend over $550 billion to expand production capacity. However, this could be a very risky move. There is a danger that by the time new factories are completed, market conditions may change, and prices could plummet if supply exceeds demand.

Nevertheless, Wall Street analysts and investors are looking for new companies that could achieve success like NVIDIA. SK Hynix is seen as one such promising candidate. Pricing for the company's shares will be set on Thursday, and trading on US exchanges is expected to begin on Friday.