SK Hynix Raises $26.5 Billion in Nasdaq Offering Amid AI Chip Demand Surge

South Korean semiconductor giant SK Hynix successfully raised approximately $26.5 billion through its American Depositary Receipts (ADR) offering on the Nasdaq, following an oversubscription of seven times. The ADRs were priced at $149 each, 2.7% above the average share price in Korea over the past three days. SK Hynix shares rose 2.5% on the Korean stock exchange, while the KOSPI index gained 5%. The company’s ADRs began trading on the New York Stock Exchange under the ticker SKHY.

This fundraising marks the second-largest IPO in history, surpassed only by SpaceX’s $75 billion offering last month. For comparison, Saudi Aramco raised $25.6 billion in 2019, and Alibaba raised $25 billion in 2014. SK Hynix initially aimed to raise $29 billion but adjusted expectations due to recent declines in the Korean market.

SK Hynix has emerged as a key beneficiary of the global AI development race, leading in advanced High Bandwidth Memory (HBM) chips critical for AI accelerators used by companies like Nvidia and Google. Demand for these chips has surged with the expansion of large AI models and data centers. The company has outperformed competitors such as Samsung Electronics and Micron, becoming a vital chip supplier for the AI industry.

The Nasdaq offering aims to broaden SK Hynix’s investor base and facilitate American investors’ access to a major winner in the AI infrastructure boom. Investors view SK Hynix as directly benefiting from massive technology investments in advanced computing infrastructure.