SK hynix makes historic Wall Street debut, surging 13% on first day

SK hynix employees attend the opening bell ceremony marking the company's Nasdaq listing in New York on Friday (local time). [Reuters]

Global investors turned their attention to SK hynix as the company made its debut on the US stock market. When the chipmaker's American depositary receipts surged well above their offering price on the first day of trading, major international media described it as a "historic debut" and spotlighted the shifting landscape of the AI memory chip market.

SK hynix's ADRs closed at $168.49 on Friday (local time), up 13.08% from the offering price, after holding gains throughout the session — a performance analysts said showed that investor appetite for AI semiconductor plays remains very much alive.

Leading business broadcasters CNBC and Bloomberg TV both gave prominent coverage to the listing. SK Group Chairman Chey Tae-won appeared on both networks in succession, expressing confidence in memory chip demand driven by the spread of AI and in the market's long-term outlook.

International media attention went beyond the listing's strong reception to focus on structural changes in the memory chip industry. Bloomberg said the "historic debut" represented "a market bet that the AI boom will fundamentally alter the boom-and-bust cycle that has dominated the memory chip industry for decades."

Bloomberg also noted that Chey spoke of expanding long-term supply agreements with customers, signaling his view that the memory industry is moving away from its traditionally cyclical nature. With demand for AI servers and HBM growing on a structural basis, the old cycle of oversupply and sharp price drops may be a thing of the past.

The SK hynix logo is displayed on a glass wall at the 2026 World IT Show held at COEX in Seoul on April 22. [AFP]

The New York Times called the listing "the latest test of investor demand for AI-related companies." The Wall Street Journal, in an article headlined "Korean Memory Chip Maker's Historic US Debut Shakes Up Markets," said SK hynix's "historic US trading debut helped revive AI investment sentiment."

Reuters also reported that SK hynix had successfully entered the US market amid the AI frenzy. While some had suggested semiconductor stocks were taking a breather, the strong reception for SK hynix's ADRs was read as a signal that enthusiasm for AI chips had not easily faded.

Competition over semiconductor supply chains has intensified in the United States alongside growing investment in AI infrastructure. As the US government steps up efforts to attract advanced chip production and packaging investment onshore, SK hynix's New York listing served as a fresh reminder of the global standing of Korean memory chipmakers.

Wall Street analysts were broadly upbeat. Thomas Hayes, chairman of Great Hill Capital, told Reuters that "global semiconductors are the most heavily funded investment destination in the world right now," adding that "the underwriters and the issuer wanted to take advantage of the high valuations they were able to confirm."

The SK hynix logo is displayed at the company's Nasdaq listing ceremony in New York on Friday (local time). [Reuters]

Dan Coatsworth, investment analyst at British investment platform AJ Bell, said "demand for the stock market flotation in the US was stronger than some had expected," adding that it "suggests the memory chip rally may not have peaked — it could just be catching its breath."

Giuseppe Sette, co-founder of investment analytics platform Reflexivity, called SK hynix's ADR "the most straightforward large-cap way for US investors to get exposure to the AI memory theme."

However, Sette cautioned that companies coming to market after SK hynix may not find conditions as favorable. "SK hynix got the deal done on the strength of its growth story, but those that follow may face a more demanding and selective market," he said.

International outlets also traced SK hynix's corporate history. Bloomberg recounted how Hyundai Electronics acquired LG Semiconductors before being reorganized as Hynix, then weathered a memory downturn and creditor management before being absorbed into SK Group — concluding that the US listing "caps a remarkable comeback story" for the company.

The investment fervor surrounding SK hynix in South Korea also caught the attention of foreign media. AFP reported that an "SK hynix jacket" had become a cultural phenomenon in South Korea this year, treated as a symbol of wealth and success. The wire service noted that parody posts had gone viral depicting the company's branded outerwear as a "golden ticket" to entry at luxury stores or to attracting better romantic partners.

SK hynix's US market debut confirmed that growth expectations for the AI memory market remain intact. Analysts noted, however, that the pace of earnings improvement, competition in HBM supply and the sustainability of customer investment will be the key variables shaping the stock's trajectory after its opening-day surge.

kwater@heraldcorp.com