SK Hynix Secures Strong Demand for $28 Billion US Stock Offering
SK Hynix has reportedly achieved a sevenfold oversubscription for its $28 billion US stock offering, signaling robust investor interest in the AI chip sector.
Memory chip maker SK Hynix has garnered strong investor demand for its planned $28 billion stock offering in the United States. According to sources cited by Reuters, the offering was oversubscribed by seven times.
This significant financing effort, anticipated to be the second-largest stock issuance globally after SpaceX's recent offering, is intended to fund new factory construction and equipment purchases to meet escalating demand for AI chips. SK Hynix plays a crucial role in the AI technology supply chain due to its high-bandwidth memory (HBM) chips.
The US listing is also expected to narrow the valuation gap between SK Hynix and its competitor, Micron. While Micron holds a smaller share in key memory chip markets, its valuation has historically been higher due to its access to the world's largest capital markets.
Company executives have stated that SK Hynix is an indispensable supplier as long as demand for GPUs and AI data centers persists. The company's long-term investment in HBM technology, spanning 14 years, has positioned it at the center of the current AI boom. Despite a recent slowdown in the broader semiconductor market, SK Hynix's stock has seen substantial gains over the past year.