South Korean AI chip stock SK Hynix share price surges 13% after unveiling $29 billion US listing plan

SK Hynix US listing: Shares of South Korean memory chip giant SK Hynix surged nearly 13% on Thursday after the company unveiled plans to raise about $29.4 billion through a US stock market listing, marking one of the largest equity offerings ever attempted. The announcement sparked a rally across South Korea's semiconductor sector, with investors betting that demand for artificial intelligence (AI) hardware will continue to drive earnings growth.

SK Hynix climbed as much as 12.9% to KRW 2,907,500 during Thursday's session, extending a spectacular rally that has made it one of the world's best-performing large-cap technology stocks.

The company, a key supplier of high-bandwidth memory (HBM) chips used in Nvidia's AI processors, has seen its shares soar across every major time frame. The stock is up 8% over the past week, 49% in one month, 191% in three months, 393% in six months and an eye-popping 913% over the past year. Over a five-year period, investors have gained more than 2,100%.

AI demand fuels record fundraising ambitions

The company plans to raise 45.45 trillion won (around $29.4 billion) through American Depositary Receipts (ADRs), with trading expected to begin on July 10. The proceeds will be used to expand manufacturing capacity and purchase advanced extreme ultraviolet (EUV) lithography machines, which are critical for producing next-generation semiconductor chips.

The planned US listing comes after SK Hynix's market capitalisation crossed the $1 trillion mark, fuelled by soaring demand for AI memory chips. As one of Nvidia's most important suppliers, the company has emerged as a major beneficiary of the global AI investment boom, attracting significant interest from institutional investors seeking exposure to the rapidly expanding semiconductor industry.

If completed at the proposed size, the offering would rank among the three largest stock market debuts in history and rival Saudi Aramco's record-breaking $29.4 billion IPO in 2019.

The optimism spread across the broader semiconductor sector. Shares of Samsung Electronics jumped 6.5% after US-based Micron Technology issued a quarterly sales forecast that comfortably exceeded Wall Street expectations, reinforcing confidence that AI-driven demand for memory chips remains robust.

The gains in heavyweight chip stocks helped propel South Korea's benchmark Kospi Index up 6%, extending its rally for a second straight session. The benchmark has now surged nearly 10% in just two trading days.

The sharp advance prompted the Korea Exchange to briefly halt program trading shortly after the market opened. After the Kospi rose more than 5%, the exchange activated a buy-side sidecar mechanism, suspending program buy orders in Kospi-listed shares for five minutes to curb excessive volatility.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.