SK hynix surges 13% on Nasdaq debut as AI chip demand fuels investor enthusiasm

SK hynix posted a double-digit gain on its first day of trading on the Nasdaq, with investor expectations for the chipmaker's growth as a key supplier of high-bandwidth memory (HBM) chips reflected in its share price amid sustained enthusiasm for AI semiconductor investment.

SK hynix's American depositary receipts opened at $170 on Friday (local time) on the New York Stock Exchange, above the offering price of $149. The ADRs climbed as high as $177 during trading before paring some gains, closing the day around $168 — roughly 13 percent above the offering price.

Friday's trading was conducted under the temporary ticker symbol "SKHYV." The permanent ticker, "SKHY," is set to take effect Monday. SK hynix ADRs are securities backed by a portion of the company's ordinary shares listed on the Korean stock market, designed to allow US investors to trade the stock easily in their home market.

The listing also drew attention for its scale. SK hynix raised $26.5 billion by offering 177.9 million ADR shares at $149 each — the largest share sale by a foreign company on the US market.

AI memory demand underpinned the strong debut. SK hynix has built a commanding presence in the AI server memory market by supplying HBM chips to Nvidia and other global AI chipmakers. Rapidly growing demand for HBM and high-performance DRAM as investment in AI data centers expands also bolstered investor sentiment.

A broader recovery in the US IPO market added to the momentum. The Associated Press reported that US IPO fundraising reached $104.8 billion in the second quarter of this year — the largest quarterly total in five years — as companies seek to capitalize on AI-related demand. SK hynix's Nasdaq debut came squarely within that wave of AI investment.

All three major US indexes edged up on the day. The Dow Jones Industrial Average rose 149.60 points to close at 52,637.01. The S&P 500 gained 31.75 points to finish at 7,575.39, while the Nasdaq Composite added 74.72 points to end at 26,281.61.

Technology stocks were broadly strong. Nvidia, one of SK hynix's key customers, advanced on expectations for continued AI chip demand, while Meta also gained on anticipation surrounding its in-house AI chip development and new AI models. Micron, the US memory chipmaker, bucked the trend and fell, weighed down in part by concerns that SK hynix's listing could draw investment away from the stock.

Micron's performance illustrated how SK hynix's listing had a differentiated impact within the US memory chip sector. MarketWatch noted that existing stocks sometimes face selling pressure when a competitor goes public, and that Micron fell as much as 3.8 percent during trading before recovering some of its losses.

Geopolitical uncertainty remained a factor. While US-Iran tensions continued, the prospect of further negotiations led markets to lean toward a resumption of dialogue rather than a sharp escalation. Oil prices edged down, with Brent crude for September delivery settling at $76.01 a barrel and West Texas Intermediate for August at $71.41.

Market observers say SK hynix's US listing could serve as more than a fundraising exercise — potentially a catalyst for a revaluation of the company. Greater access for US investors could increase arbitrage activity between the domestic shares and the ADRs, while the company's standing as a leading AI memory chipmaker may be more directly reflected in its valuation.

Profit-taking could emerge, however, after the sharp initial gains. How much of the ADR premium formed in the US market carries over to the domestic share price, and how far the valuation gap with rivals such as Micron narrows, will be key factors to watch going forward.