SK Hynix Inc. has launched a $29 billion stock-market listing in the United States this week, marking one of the largest initial share sales by a foreign company. The South Korea-based semiconductor manufacturer aims to attract US investors amid soaring demand for memory chips used in artificial intelligence computing, according to fortune.com.
The company’s US listing seeks to overcome challenges faced by American investors who previously had limited access to SK Hynix shares, which traded primarily on South Korean exchanges. Unlike its US rival Micron Technology, whose shares have surged 242% this year, SK Hynix’s South Korea-listed shares required off-hours trading for US investors. The new listing on Nasdaq will provide direct access and improved liquidity, tapping into the strong enthusiasm for chip stocks driven by AI applications.
This move positions SK Hynix to compete more effectively with Micron, the second-best performer in the S&P 500 this year, as both companies benefit from a booming market for high-bandwidth memory chips used in AI data centers. The US market’s deep equity pool and investor focus on AI-related technology stocks could help SK Hynix narrow the valuation gap with its American rival and capitalize on the sector’s growth.
Daniel Morgan, senior portfolio manager at Synovus Trust Co., highlighted the timing as favorable, noting the extreme enthusiasm for chip stocks in the US. The listing will allow SK Hynix to engage directly with US investors and participate more fully in the AI-driven chip market’s momentum, according to fortune.com.