SK Hynix's (SKHY.US) debut on the US stock market tonight is a major event! The AI investment boom will face a critical stress test.

South Korean storage chip giant SK Hynix (SKHY.US) will officially debut on the US market for trading on Friday. This US listing debut will be a key test of whether investors still believe in the sustainability of the artificial intelligence (AI) boom, especially after a recent pullback in semiconductor stocks. SK Hynix has set the issuance price of its American Depositary Receipts (ADR) for its US listing at $149 per share, a 2.7% premium over the average stock price in Seoul over the past three trading days. According to a registration statement filed with the US Securities and Exchange Commission (SEC), each SK Hynix ADR represents one-tenth of a share of the company's common stock. The final size of the ADR issuance has been set at 17.79 million shares of common stock (equivalent to 1.779 billion ADRs) with a fundraising size of approximately $26.5 billion. This will be the largest ever IPO by a foreign company in the US, surpassing the previous record of $25 billion set by Alibaba Group Holding Limited Sponsored ADR. It is reported that SK Hynix's ADR issuance has attracted more than 7 times oversubscription. Prior to this, sources indicated that this issuance attracted demand from various institutional investors, including global long-term investment funds, technology-focused funds, sovereign wealth funds, and global investment institutions focusing on the Asian market. SK Hynix has received commitments for subscription from institutions such as Baillie Gifford, Coatue Management, and Situational Awareness Partners, with the total amount of ADR intended for subscription by these institutions reaching up to $7 billion. The ADR issuance by SK Hynix has attracted enthusiastic participation from investors, reflecting a global pricing consensus on the AI storage industry chain. SK Hynix is the world's second-largest DRAM manufacturer and the leading global manufacturer of HBM, with a market share of 56.4% in the first quarter of 2026. The company's NAND flash global market share is 18.5%, and its net profit increased by 398% year-on-year in the same period, with an operating profit margin exceeding 70%. SK Hynix has a deep partnership with NVIDIA Corporation in joint research and development. However, after a strong rally, chip stocks have shown signs of cooling off in recent weeks, partly due to investor concerns about a potential slowdown in AI spending. The stock price of SK Hynix listed in Seoul has fallen by about 25% from its high two weeks ago. Nevertheless, the company's stock price has still risen by approximately 630% compared to a year ago. Thomas Hayes, chairman of New York-based Great Hill Capital, stated: "The global semiconductor sector is currently the most crowded trade in the world. The underwriters and issuerSK Hynixare financing at the peak of market demand. They believe the current valuation is at a high level and are seizing this opportunity." Following SpaceX (SPCX.US) setting a record-breaking IPO last month, this offering by SK Hynix is the second largest stock offering deal in the US market. The fundraising will provide funds for SK Hynix to build new factories and allow this memory chip manufacturer to directly reach the largest group of global investors. SK Hynix stated that the funds raised will primarily focus on the construction of the first semiconductor fabrication plant in Icheon Semiconductor Valley, the expansion of the advanced packaging facility in the Cheongju P&T 7 complex, and the construction of an AI memory packaging facility in Indiana, USA. Additionally, the company will purchase Extreme Ultraviolet (EUV) lithography equipment to further enhance its advanced manufacturing capabilities. Overall, the investment focus of this fundraising is highly concentrated on the expansion of HBM, advanced packaging, and high-end manufacturing capacity, in line with SK Hynix's long-term strategic goal of solidifying its competitive advantage in the AI chip supply chain and meeting the rapid growth in demand for AI memory. SK Hynix also stated that this listing is aimed at increasing the company's visibility in the global capital markets and seeking a more reasonable market valuation. The company believes that despite establishing a leading position in the AI memory market, its current valuation is still lower than its competitor, Micron Technology, Inc. (MU.US). Data shows that Micron Technology, Inc. has also experienced a surge in stock price of 711% in the past 12 months. While SK Hynix dominates the HBM market, its forward 12-month P/E ratio is about 5.8 times, compared to Micron Technology, Inc.'s forward 12-month P/E ratio of about 7 times. Analysts believe that SK Hynix's US listing will expand its investor base, enhance stock investability, and help narrow the valuation gap with Micron Technology, Inc. Giuseppe Setti, co-founder of investment analysis platform Reflexivity, said: "For US investors, this is the purest large-cap stock in the AI memory chip sector to invest in. SK Hynix chose to list on Nasdaq to meet this demand and enjoy a higher valuation level compared to the Seoul market for chip stocks." "SK Hynix has successfully completed this fundraising with the AI story, but companies planning to list in the US in the future may face a more challenging, more discerning market." As the market enthusiasm for AI infrastructure investment begins to wane and causes significant fluctuations in related chip stocks, SK Hynix's listing will undoubtedly be a major test. To compete for a leading position in faster and smarter AI models, tech giants are investing billions of dollars in building the infrastructure to support AI development, and are raising funds through stock issuances and debt financing for this costly expansion plan. Analysts expect this type of capital expenditure to continue to grow in the short term. A report released this week by Bank of America Corp Securities estimates that global capital spending on cloud computing and AI infrastructure will approach $1.5 trillion by 2027, a year-on-year increase of 40% to 50%. However, doubts are growing in the market about how much return these massive investments will ultimately bring. This has also raised concerns among investors about the possibility that mega-scale cloud computing service providers may have to slow down their capital expenditures. Matt Kennedy, Senior Strategist at Renaissance Capital, focusing on IPO research and ETF products, said: "Investors will weigh the strong performance accumulated over the past year due to the significant rise in stock prices against recent market volatility. Concerns about oversupply have always been inherent risks in the semiconductor industry."