SK Hynix is set for its major US trading debut on Friday following a $26.5 billion share sale. This move is a critical test of investor confidence in the AI boom's durability, arriving after a recent pullback in semiconductor stocks.
The South Korean chipmaker is the world's largest maker of high-bandwidth memory (HBM) chips. These components are essential for the advanced graphics processing units (GPUs) used in artificial intelligence, supplied by firms like Nvidia.
The offering, the second-largest in the US this year, provides direct access to the world's largest investor pool. It aims to help close a significant valuation gap; SK Hynix trades at a lower forward earnings multiple than its US-based competitor, Micron.
Despite recent stock volatility, the deal highlights the intense investor focus on AI infrastructure. Global spending on cloud and AI capital expenditure is forecast to approach $1.5 trillion by 2027.
Analysts note that while demand for AI memory remains strong, concerns about future returns on massive investments are growing.