Shares of South Korean memory chipmaker rose 12.8% as they made their debut on Wall Street on Friday.
The company is already one of the largest in South Korea, along with Samsung Electronics, and is a member of the Kospi index. Even with a recent pullback, the country’s Kospi index is up 77% so far this year and SK Hynix shares have more than tripled.
SK Hynix priced its American depositary receipts, or ADRs, at $149 each Thursday. They opened Friday at $170 and closed at $168.01. The offering of 177.9 million ADRs raised proceeds of $26.5 billion, making it the biggest-ever initial share sale in the U.S. by a foreign company. (An ADR is issued by a bank or broker and is a simplified way for US investors to own foreign stocks through the U.S. markets.)
Key thing to know about SK Hynix:
- SK Hynix has a dominant position globally for high bandwidth memory, which is essential for the development of advanced AI technology.
- The company recently entered a partnership with Wall Street’s most valuable company, Nvidia, for advanced memory chips as AI infrastructure expands globally.
- The US is SK Hynix’s largest market, accounting for 68.8% of its revenue last year.
- It is planning an expansion that includes building its first US production facility, located in Indiana.
- Overall, the company had revenue of just under $65 billion in 2025. That helped profits double to about $28 billion.
- The company recently joined with Samsung and the government in announcing plans to invest a combined 800 trillion won ($518 billion) in building a new computer chipmaking hub in South Korea’s southwest region
Is it a buy?
“I would go with SK Hynix for the long haul,” says Rishabh Nahar, Partner and Fund Manager at Qode Advisors
He reasons: SK Hynix has a strong grip on the HBM market, with 58% share, and they’re Nvidia’s main partner for the latest chips. They’re also first to test out the new HBM4E. Once a supplier gets into a big customer’s plans, it’s tough to switch, so that advantage sticks.
Plus, SK Hynix’s Nasdaq listing is a big deal. Their management is clear that this move should help close the valuation gap with Micron, since US investors can now buy in directly, Nahar adds.
Why it matters for Indian investors?
Noting that SK Hynix’s listing is a ‘major development’ for Indian investors, Viram Shah, Founder & CEO, Vested Finance, said, “Until now, if you wanted exposure to the biggest HBM maker, SK Hynix was on the Korea exchange, which is hard for most Indian investors to reach.”
But, now you can hold SK Hynix through the same US brokerage route you’d use for any American stock.
The availability of SK Hynix and Micron through US brokerages has made it easier than ever for Indian investors to gain exposure to the fast-growing memory and AI theme, Shah concludes.