SK Hynix Jumps 13% in Record $26.5B US Nasdaq Debut on July 10

SK Hynix raised $26.5 billion in its US debut on July 10, the largest initial public offering by a foreign company ever. The South Korean memory chip maker sold 177.9 million American depositary shares at $149 each on Nasdaq under ticker SKHYV, then switched to SKHY for regular trading. The stock climbed to $168 on its first day, a 13% gain, as investors bet on soaring demand for high-bandwidth memory chips that power artificial intelligence systems.

Record-breaking demand for AI memory chips

The IPO was oversubscribed seven times, with orders reaching $171 billion for a $24-28 billion deal. This extraordinary demand reflects global capital’s hunger for exposure to the AI memory cycle. SK Hynix is a key supplier to Nvidia and other AI chip makers. The company’s South Korea-listed stock has surged 174% in six months and 634% over the past year, signaling how central memory production has become to the AI build-out.

Why the US listing matters for investors

SK Hynix’s primary listing remains in Seoul, but the US debut gives American investors direct access to the memory stock without trading complications. The listing broadens the investor base and may help narrow SK Hynix’s valuation gap with US rival Micron Technology. However, the company is issuing new shares, which dilutes existing shareholders. SK Hynix reported Q1 2026 revenue of 52.6 trillion won and operating profit of 37.6 trillion won, setting a high bar for future growth.

Leveraged ETFs amplify volatility

Multiple ETF issuers including ProShares and Leverage Shares are launching leveraged products tied to SK Hynix, with at least six products expected to debut the week after the IPO. A 2x long ETF (SKHX) and 1x short ETF (SKHZ) from Leverage Shares will allow traders to amplify or short the stock. These products carry significant risk and are designed for active traders who understand daily rebalancing mechanics.

Capital deployment for manufacturing scale

SK Hynix plans to use IPO proceeds for new factories and manufacturing equipment. Memory chip production requires massive capital investment in clean rooms, specialist machinery, power, and water. The company is racing to expand capacity as AI data centers compete fiercely for high-bandwidth memory supply. Success depends on whether new factories generate attractive returns in a cyclical industry where memory prices fluctuate with supply and demand.

Final Thoughts

SK Hynix’s record $26.5 billion US debut signals that global capital views AI memory demand as real and durable. The 13% first-day gain and seven-times oversubscription confirm investor appetite. For Hong Kong investors, the US listing offers easier access to a pure-play memory stock, though execution risk remains tied to factory returns and memory price cycles.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.