All articles tagged with #sk hynix
SK Hynix's U.S.-listed ADRs jumped in early trading after a 14% drop the prior session, aided by Korea’s market holiday that kept the underlying stock closed and encouraged U.S. bargain-hunting. ADRs traded at roughly a 27% premium to the Seoul shares, reflecting the size of the U.S. investor base, and Barron’s notes the stock’s forward P/E is low relative to Micron, offering a cheaper way to play the memory-chip upcycle.
Jim Cramer says SK Hynix’s Nasdaq ADR listing gives investors a cheaper way to ride the AI-driven memory boom, supported by strong demand for DRAM/HBM and a multi-year Nvidia partnership, but he cautions memory chips have historically been a boom-bust business and supply growth could cap prices as fabs take years to come online (late 2027–2028), keeping the stock risky despite the upcycle.
South Korea’s Financial Services Commission announced measures to curb volatility in SK Hynix by suspending new listings of single-stock leveraged ETFs and raising the minimum deposit to 30 million won (about $20k) starting Aug. 5. The move follows a sharp drop in SK Hynix shares, with its ADR down around 12% and the local stock slipping roughly 11–12%, as investors weigh the chipmaker’s fundamentals and the broader memory-chip rally.
The AI memory supercycle pits SK Hynix’s leading HBM share and a cheaper valuation against Micron’s strong U.S. manufacturing footprint and earnings momentum. With memory demand expected to run well ahead of supply for years, both face capacity constraints and geopolitics—yet the winner may hinge on who captures more upside from the multi-year cycle: the HBM leader at a discount or the domestic producer at a premium.
Asian semiconductor shares slid after a U.S. chipmakers’ decline spilled into the region, with SK Hynix dropping about 11% in Seoul and Samsung Electronics also lower. The move followed profit-taking after a sharp AI-driven rally, even as demand for high‑bandwidth memory and AI infrastructure remains robust; regulators and hedging signals in the U.S. added caution, though analysts say fundamentals for AI-related chips are intact.
Memory stocks reversed course after a sharp AI-driven rally, with SK Hynix down 5% after yesterday’s 27% surge, SanDisk off 6%, and Western Digital down 4% as traders lock in gains. The Roundhill Memory ETF fell about 3% as leveraged single-stock funds amplified intraday swings. While Micron has enjoyed strong year-to-date gains, the group faces a wind-down in momentum and ongoing competition, with Western Digital’s July 29 earnings in focus. The AI memory upcycle remains structurally intact, but today’s pullback highlights elevated volatility in memory names.
US-listed SK Hynix shares slipped about 6% as investors took profits after its Friday debut, helping drag the broader chip sector lower amid worries of an overstretched AI trade. Fellow memory names Micron, SanDisk SNDK, and Western Digital fell around 5%, while Intel, AMD, Broadcom and Arm also declined, signaling a broader memory-and-AI rotation after a crowded rally and fears of softer AI investment.
SK Hynix’s stock fell more than 12% in Seoul after a blockbuster Nasdaq debut, as investors booked profits and weighed the fair value across US-listed ADRs and Korean shares. Analysts say AI memory demand remains strong and the pullback should be temporary, though valuation gaps and additional share supply from the offering could keep near-term volatility with a rebound expected over the next six to twelve months.
SK Hynix CEO Kwak Noh-jung warned that 2027 will be the memory industry’s worst year in supply, with shortages likely to persist beyond 2030 as demand outstrips production amid AI-driven growth; the company is pursuing multi-year capacity expansions and potential new fabs in the US, Japan, and Southeast Asia, a trend echoed by Samsung and Micron, while premium memory like HBM/LPDDR5X is prioritized and consumer memory faces price hikes.
Jim Cramer highlighted SK Hynix as a pivotal player in the global memory market, noting the company’s potential US ADR listing on NASDAQ could raise about $29 billion and position SK Hynix near the top tier alongside Samsung and Micron. He also cautioned about pricing dynamics amid heavy demand (oversubscription) and stressed the need for a pricing discount that isn’t overly punitive to keep the deal attractively tight, as AI-driven memory demand remains a key driver.
U.S. stocks opened mixed ahead of SK Hynix’s record US listing, the largest-ever foreign IPO, with the Dow up about 0.1%, the S&P 500 flat, and the Nasdaq down roughly 0.2 as chip names tug on tech shares. Oil prices also edged higher near $72 for WTI and over $76 for Brent amid renewed Middle East tensions and slower traffic through the Strait of Hormuz. Delta Air Lines fell on higher fuel costs, though it beat earnings estimates and reinstated full-year guidance.
SK Hynix raised $26.5 billion in its US initial public offering by selling 177.9 million American Depositary Shares at $149 each, making it the largest foreign first-time listing in the United States; the ADS will trade on Nasdaq under SKHYV before moving to the regular ticker SKHY, as the memory-chip maker looks to expand capacity to meet AI-driven demand.
South Korea’s SK Hynix raised $26.5 billion in a record-breaking US IPO by selling 177.9 million ADS at $149 each on Nasdaq, making it the largest ever listing by a foreign company in the US and the second-largest IPO globally after SpaceX. The deal was about seven times oversubscribed, underscoring strong demand for AI-related memory chips as SK Hynix reports robust profits and aligns with a broader $1 trillion AI investment push with Samsung, fueling a rally in Korea’s stock market.
South Korea’s SK hynix priced a US listing on Nasdaq to raise about $26.5 billion via American depositary shares, issuing roughly 177.9 million ADS at $149 each (representing one-tenth of a share) after a deal more than seven times oversubscribed. The offering, led by major banks, aims to fund a Yongin fabrication hub and an advanced packaging plant in Cheongju as AI demand boosts high-bandwidth memory chips, solidifying SK hynix’s position alongside Samsung and Micron in the $1 trillion-plus memory-chip arena.
Jim Cramer says SK Hynix’s Nasdaq ADR listing offers a cheap way to play the AI-driven memory boom, trading a bit over seven times this year’s earnings; however, memory chips have a history of boom-bust cycles, and if supply catches up with demand the rally could reverse, so he suggests a small initial position with room to buy more on dips.