SK Hynix debuted in the US public market with a strong gain, starting trading at US$ 170 per share, about 14% above the offer price of US$ 149. The performance marks one of the largest recent openings and reinforces growing investor interest in the semiconductor sector focused on artificial intelligence.
The South Korean company raised approximately US$ 26,5 billion with its initial public offering (IPO), setting a new milestone as the biggest debut by a foreign company in the US. The deal included the issuance of 177,9 million American depositary receipts (ADRs), each representing a fraction of the ordinary shares.
Demand for the shares far outpaced the available supply, with demand about seven times higher. This appetite reflects the positive moment experienced by memory manufacturers, driven by the growing need for high-performance chips used in data centers and AI applications.
SK Hynix, Nvidia’s strategic supplier, is looking to expand its production capacity to meet the global expansion of artificial intelligence. The increasing adoption of advanced models requires greater data-processing efficiency, which boosts the relevance of solutions such as high bandwidth memory (HBM).
This type of memory plays an essential role by storing critical data near the processor, enabling faster execution. Unlike traditional storage, HBM significantly improves the performance of systems that handle large volumes of data in real time.
Currently, only three companies dominate the HBM market: SK Hynix, Samsung and Micron. According to documents sent to the SEC, SK Hynix leads this segment with 56,4% share, solidifying its position amid the technology race driven by AI.
Despite the favorable scenario, the memory sector has already shown volatility in previous cycles. "We can’t forget that, a few years ago, these memory storage companies had negative gross margins—no negative net income, but negative gross margins," explained Patrick Moorhead, founder and CEO of Moor Insights & Strategy.
"They were literally selling products below cost, and then they drastically reduced capital investments and... here we are," he said.
The global chip shortage, combined with the time required to build new factories, indicates that supply may remain limited in the coming years, sustaining market interest in companies in the sector.