SK Hynix's record $26.5B US IPO fuels AI memory expansion

SK Hynix shattered records with a $26.5 billion U.S. IPO, the largest ever by a non-American company, eclipsing Alibaba's $25 billion debut in 2014. The South Korean memory chip maker sold 177.9 million American depositary shares at $149 each, giving U.S. investors a tenth-share entry point. The stock jumped 14% on opening and was still climbing Friday morning. Demand was reportedly seven times the available shares — a remarkable feat given the historical "Korea Discount" that typically depresses valuations for Korean firms due to governance concerns and geopolitical risks tied to North Korea. SK Hynix sidestepped that discount entirely because it manufactures high-bandwidth memory (HBM), a critical component for Nvidia's AI GPUs.

The IPO proceeds will fund a new fabrication plant in South Korea, an advanced packaging facility, and EUV lithography scanners for next-gen chip production. The timing aligns with a push from U.S. Commerce Secretary Howard Lutnick, who publicly urged SK Hynix and fellow Korean chipmaker Samsung to build factories on American soil. Lutnick delivered that message at a Micron event, where the U.S. memory giant announced a $250 billion domestic manufacturing plan expected to create 90,000 jobs. Both Korean companies have already pledged over $550 billion for new facilities in South Korea, but the U.S. government is keen to reduce reliance on Asian production for the AI chip supply chain. SK Hynix's overwhelming IPO demand signals investor confidence in the AI memory boom and raises pressure on the company to balance its domestic expansion with potential U.S. investments.