SK hynix (000660.KS) will list on the U.S. stock market this week in a deal worth $29 billion (about 45 trillion won). It is the largest-ever debut by a foreign company. As the semiconductor boom spreads worldwide, attention is turning to SK hynix's artificial intelligence (AI) memory chips. The reasons: the company is undervalued relative to Micron Technology and stands a strong chance of joining major indexes.
SK hynix will list American depositary receipts (ADRs) on the Nasdaq on the 10th, according to Bloomberg on Friday. The move is not merely about raising funds. It is a bid to compete in AI memory chips, the biggest battleground in global equity markets.
SK hynix has traded at a lower valuation than Micron for years. Riding the world's deepest capital markets and the AI craze could change that trend. AI data center memory companies are currently leading the S&P 500's gains. "This is a time of euphoria for chip stocks," said Daniel Morgan, senior portfolio manager at Synovus Trust, which holds Micron shares. "It's a good time to attract U.S. investors."
SK hynix, Previously Out of Reach — Will U.S. Retail Investors Open Their Wallets?
For most U.S. investors, investing in SK hynix has been difficult. Like Micron, which surged 242% this year to rank second in the S&P 500, SK hynix has benefited from surging demand for high-bandwidth memory (HBM). But holding Korean stocks directly required after-hours trading in the United States. ADRs also traded over the counter, resulting in lower returns and limited liquidity.
The SK hynix ADR is expected to resolve these issues and improve its undervaluation. SK hynix trades at a price-to-earnings ratio (PER) of 6.2 times estimated earnings for the next 12 months. Micron stands at about 7 times after falling 14% last week. As recently as the 22nd of last month, it topped 11 times.
"This offering targets investors who lack access to the Korean stock market," said Dee Zhou, portfolio manager at Thornburg Investment, which holds SK hynix shares. "It provides frictionless exposure to the most attractive pure-play investment in the AI memory cycle."
The U.S. listing could lead to inclusion in the Nasdaq 100 index. That would trigger buying by exchange-traded funds (ETFs) that track the index. The Invesco QQQ Trust, which tracks the Nasdaq 100, holds $482 billion in assets. Hedge fund arbitrage targeting the valuation gap between the Nasdaq ADR and the Seoul-listed shares is also expected to flow in. It is a strategy used during the listings of Alibaba and TSMC.
"The cross-market structure will create premiums and discounts between the two stocks," said Brendan Ahern, chief investment officer (CIO) at KraneShares, which holds Micron shares. "It will attract arbitrage participants and boost liquidity."
It remains unclear, however, whether SK hynix ADRs can be freely exchanged for the Korean shares. TSMC ADRs have traded at an average premium of more than 21% over the local shares over the past year, and currently at about 13%.
Memory Stocks Rally 700% in a Year — Warnings of a 'Speculative Bubble' Grow Louder
Over the past year, SK hynix's Korean shares and Micron's stock have both risen about 700%, pushing the two companies' combined market capitalization past $1 trillion. This rally has been seen across the memory and storage industry. SanDisk soared 3,676% over the same period to rank first in the S&P 500. Western Digital jumped 719%, and Seagate rose 449%.
But anxiety is growing over how long the boom will last. Big tech firms driving memory demand, such as Alphabet and Microsoft, have recently begun raising funds through debt and equity instead of cash. Such capital spending has boosted memory makers' profits, but the picture would change if funding sources dry up.
"Investors risk stepping into a speculative bubble," warned Ed O'Gorman, chief executive officer (CEO) of Riverwealth Advisors. "Stocks that have risen this sharply must be viewed with great caution." Morgan, the portfolio manager, also said, "It will be a very hot stock," adding, "I'll watch it come to market first and then decide."
Meanwhile, SK hynix is projected to record revenue of 355 trillion won and net profit of 221 trillion won in 2026. Those figures represent increases of 265% and 415%, respectively, from 2025. Micron expects revenue of $130 billion (up 247%) and net profit of about $83 billion (up 876%) in its current fiscal year ending Aug. 31.
