SK hynix Opens on NASDAQ at $170... "Memory Shortage May Last Until 2030"

Intraday High Reaches USD 176.34

Kwak Nojeong: "Clients Expect Supply Shortage to Persist"

Spotlight on SK hynix as Key Beneficiary of Expanding AI Investments

SK hynix's American Depositary Receipts (ADR) made their debut on the NASDAQ in the United States, opening at USD 170—approximately 14% higher than the public offering price of USD 149. Driven by expectations of continued memory semiconductor supply shortages fueled by expanding investments in artificial intelligence (AI), global investors flocked to purchase shares.

SK Chairman Chey Tae-won is greeting New York correspondents after finishing a press conference at Nasdaq in New York on the 10th (local time). SK

As of 2:52 p.m. (local time) on July 11, SK hynix was trading at USD 168.74 on NASDAQ, up 13.25% from its offering price. The stock opened at USD 170, marking a 14.1% increase over the offering price. During intra-day trading, the price climbed as high as USD 176.34, representing an 18.3% jump from the offering price.

In his first English-language interview held in New York, SK hynix CEO Kwak Nojeong stated that the memory semiconductor shortage, which is disrupting markets for computers, automobiles, and electronic devices, could persist beyond 2030.

CEO Kwak explained that customers are entering into long-term supply contracts, adding, "This is because customers anticipate that the supply shortage will last longer." He noted that, in addition to SK hynix's own analysis, demand signals from client companies also suggest that memory supply may be unable to keep up with demand for a considerable period.

With investments in AI data centers soaring, demand is rapidly increasing not only for high-bandwidth memory (HBM) used in AI accelerators but also for general-purpose memory. As data center operators intensify their efforts to secure memory, shortages are emerging in the supply of memory for computers, smartphones, automobiles, and more.

SK hynix, Samsung Electronics, and U.S.-based Micron Technology are regarded as the primary beneficiaries of expanding AI investments among major memory semiconductor makers. In particular, SK hynix continues to lead the HBM market for AI accelerators used by Nvidia.

U.S. competitor Micron Technology also projected that the memory supply shortage would persist for several years. Sanjay Mehrotra, CEO of Micron Technology, said during last month’s earnings call, "At present, it is unclear when memory supply will be able to catch up with growing demand."

This listing marks the largest initial public offering ever conducted by a foreign company on a U.S. stock exchange. SK hynix issued 177.9 million American Depositary Shares (ADS) at USD 149 each, raising approximately USD 26.5 billion. Each ADS represents one-tenth of an ordinary share of SK hynix.

CEO Kwak cited strengthening collaboration with AI clients and securing AI talent as key objectives for the U.S. listing. He stated, "It is necessary to relocate to the AI hub of the United States, to collaborate more closely with clients, grow together, and contribute to the AI ecosystem."

He also left open the possibility of manufacturing memory semiconductors directly in the United States. When asked whether SK hynix might build memory production facilities in the U.S., CEO Kwak did not rule it out, but emphasized that candidate locations must meet the company's investment criteria, including power supply, water resources, and talent availability.

Market observers believe that this listing goes beyond simple capital raising and will improve accessibility for U.S. investors, serving as an opportunity to revalue SK hynix's corporate value.

Though SK hynix leads the global HBM market, its corporate value has historically been discounted relative to U.S. semiconductor companies. Directly listing on the world’s largest capital market may help mitigate these discount factors.

Meanwhile, on the first day of trading, the stock is being traded under the temporary ticker symbol 'SKHYV.' Starting from July 13, trading will switch to the official ticker 'SKHY,' and the settlement date is July 14.

This content was produced with the assistance of AI translation services.