The global artificial intelligence (AI) boom is creating a new crop of stock market heavyweights.
South Korean chipmaker SK Hynix, one of Nvidia’s biggest suppliers, is set to launch a massive $28 billion public offering in the United States this week, in what is expected to be one of the world’s biggest new stock sales. The company is capitalizing on growing investor demand for AI-related businesses after its stock price soared about 273% this year.
SK Hynix plans to sell 17.79 million new shares through American Depositary Receipts (ADRs) on Nasdaq. The final price is expected to be determined later this week before trading opens on Friday.
Why is SK Hynix listed in the US?
This timing is no coincidence.
Over the past two years, investors have poured billions of dollars into companies seen as beneficiaries of the AI revolution. While companies like Nvidia grab the headlines, SK Hynix has quietly emerged as one of the biggest winners by supplying the advanced memory chips needed to power AI systems.
The company’s stock has risen about 273% this year, making it one of the world’s best-performing technology stocks. The Nasdaq listing is expected to help capitalize on that investor enthusiasm while raising new capital for expansion.
What does SK Hynix do?
SK Hynix may not be as well-known as Nvidia or Samsung Electronics, but it plays an important role in the AI supply chain.
The company makes high-bandwidth memory (HBM) chips, a special type of memory that allows AI processors to quickly access and process large amounts of data. These chips are essential for training and running advanced AI models.
The company’s customers include Nvidia and Google, whose AI products rely heavily on high-performance memory. Strong demand for these chips has helped SK Hynix outperform rivals such as Samsung Electronics and Micron during the AI boom.
One of the world’s largest stock sales
The proposed listing is expected to rank among the world’s largest initial public offerings.
This would be second only to the $85.7 billion raised by SpaceX last month and bigger than Saudi Aramco’s $25.6 billion IPO in 2019 and Alibaba’s landmark public offering in 2014, according to Reuters.
The size of the offering reflects the huge investor demand for companies directly related to artificial intelligence infrastructure.
Bet big on AI
SK Hynix is not only raising capital, but also preparing for the next phase of AI demand.
Last week, the company announced plans to invest 100 trillion won (approximately $64.4 billion) in building new semiconductor manufacturing facilities, including a new NAND flash memory factory. The investment forms part of South Korea’s broader strategy to strengthen its leadership in AI chips and advanced semiconductor manufacturing.
The list highlights how artificial intelligence is reshaping global markets.
Companies that make chips that power AI are attracting billions of dollars in investment as technology companies rush to expand computing power.
For Indian investors, the story is a reminder that while domestic IT companies are focusing on AI software and services, globally the biggest beneficiaries so far have been the semiconductor companies supplying the hardware behind the AI revolution.
As AI competition intensifies, investors will be watching closely to see whether companies like SK Hynix can continue to generate strong returns to justify the lofty valuations generated by the AI boom.
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