Freedom Broker analysts call SK Hynix’s Nasdaq listing record-breaking

Freedom Broker experts believe that the record-breaking listing of SK Hynix American depositary receipts on Nasdaq has become not only the largest foreign-company listing in U.S. history, but also confirmation of investors’ long-term interest in manufacturers of artificial intelligence infrastructure. At the same time, the experts warn that the company’s securities already largely reflect expectations for further AI market growth, so investors should take into account the elevated risk of a correction. Read more about the listing in the biweekly review by Freedom Broker analysts.

What SK Hynix does 

SK Hynix is one of the world’s largest memory chip makers and a leading supplier of high-bandwidth memory (HBM) chips, which are used in AI accelerators and modern data centers. Among the company’s largest clients is Nvidia (NVDA).

Record listing confirmed strong demand for AI companies

SK Hynix American depositary receipts debuted on Nasdaq at $170, about 14% above the offering price of $149. As a result, the company raised $26.5 bn and carried out the largest offering by a foreign issuer in the history of the U.S. stock market.

Even before trading began, demand for the securities proved exceptionally high. According to Bloomberg, investor orders for 177.9 million ADRs, corresponding to 17.79 million ordinary shares, exceeded the offering size by more than seven times.

Record demand for the offering shows that investors continue to bet on companies that are key suppliers of infrastructure for artificial intelligence, Freedom Broker analysts note. Despite recent volatility in the semiconductor sector, the market is still willing to pay a premium for leaders in this space.

Leader in the HBM chip market

According to Freedom Broker, structural changes in the global semiconductor market today are unfolding in favor of memory manufacturers for AI systems. SK Hynix has become South Korea’s largest public company and has overtaken Samsung in market capitalization not by chance, leading Freedom Global analyst Natalia Milchakova noted. At the end of June, the company’s market capitalization reached about $1.35 trln. The company holds leading positions in the fastest-growing segment of the market—HBM memory, which is required for the operation of modern artificial intelligence accelerators.

According to experts, SK Hynix controls more than 61% of the global HBM memory market, while Samsung Electronics’ share is around 17%. It was precisely the high demand for AI solutions that enabled the company to overtake Samsung in market capitalization for the first time in many years.

What is driving investor excitement

Investor interest in SK Hynix is strengthening amid the ongoing artificial intelligence boom. Earlier this year, the South Korean chipmaker announced its intention to invest 21.6 trillion won (about $15.1 bn) in expanding production capacity in the city of Yongin by 2030.

The funds will be used to build the first plant and create production facilities for subsequent stages of the project—from the second through the sixth. The company also decided to accelerate the launch of the first cleanroom and moved its opening from May to February 2027 to meet growing global demand for semiconductors sooner.

Construction of the Yongin complex is already progressing actively: the frame of the first plant has reached a height comparable to a 50-story residential building. Total investment in this facility will amount to about 31 trillion won (approximately $21.5 bn), including previously announced investments of $6.5 bn. SK Hynix expects that bringing new production capacities online will help strengthen the company’s competitive position in the global memory market and respond more quickly to growing demand from customers.

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