This article first appeared on GuruFocus.
SK Hynix (HXSCL) is moving to tap US capital markets in what could become one of the largest overseas listings in recent years, as the company positions itself at the center of the AI-driven memory surge. Chief Executive Officer Kwak Noh-Jung told shareholders the chipmaker has confidentially submitted plans to list American Depositary Receipts in New York in the second half of the year, though details around the size of any fundraising remain undecided. The initiative appears aimed at expanding access to global investors and potentially supporting valuation in line with other AI hardware suppliers during a period of elevated demand for advanced memory.
The backdrop remains a rapidly intensifying race for high-bandwidth memory, where SK Hynix has so far maintained a leading position supplying Nvidia’s (NVDA) AI systems. Companies including Meta Platforms and Alphabet are placing large orders for AI accelerators that require significant DRAM capacity, tightening supply and contributing to shortages in conventional memory. This demand cycle has coincided with a strong rally in SK Hynix shares, which have risen more than 50% this year following a roughly 275% increase in 2025, while also lifting Japanese chip equipment makers such as Tokyo Electron, Advantest, and Screen Holdings. In response, SK Hynix is planning more than 100 trillion won in strategic investments, including an $8 billion commitment to extreme ultraviolet lithography tools from ASML and the development of a semiconductor cluster in Yongin.
At the same time, the proposed US listing introduces trade-offs that investors are weighing carefully. Analysts suggest broader visibility and liquidity could support long-term valuation, though issuing new shares may dilute existing equity and potentially weigh on sentiment if perceived as occurring near a cycle peak. A South Korean investor group has urged the company to consider share buybacks of 10% to 15% and list those shares instead, while also cautioning that valuation improvements may depend on governance changes rather than listing location alone. SK Hynix is also negotiating longer-term contracts to stabilize supply and alleviate shortages, even as competition from Samsung Electronics and Micron continues to intensify.
