SK Hynix debuts on Wall Street with record fundraising: key RAM supplier for Nvidia

What happened?

On Friday, SK Hynix, the South Korean memory chip maker, began trading on the Nasdaq with an opening price of $170 per share, raising $26.5 billion in its initial public offering (IPO). This figure surpasses Alibaba's previous record ($25 billion in 2014), making it the largest IPO by a foreign company in US history. The stock closed its first day up 8%, according to Bloomberg data.

The company had already reached a $1 trillion valuation in May 2026 and briefly overtook Samsung as South Korea's most valuable company, according to CNBC and Fortune reports. The milestone reflects SK Hynix's dominance in the high-bandwidth memory (HBM) market, a critical component for Nvidia's GPUs used in AI data centers.

SK Hynix's IPO is not an isolated event: it comes amid an AI boom that has surged demand for semiconductors. According to the Semiconductor Industry Association (SIA), global chip sales reached $600 billion in 2025, with 20% year-over-year growth driven by AI. Founded in 1983, SK Hynix has been listed on the Korea Exchange since 1996, but its US listing aims to attract global investors and improve liquidity, similar to Alibaba's move in 2014.

Why is it important?

SK Hynix is one of the world's top three DRAM memory manufacturers and, notably, of high-bandwidth memory (HBM), a critical component for Nvidia's graphics processing units (GPUs) used in AI data centers. The AI boom has skyrocketed demand for these chips, as models like GPT-4 require massive amounts of high-speed memory. According to a TrendForce report, SK Hynix controls approximately 50% of the HBM market, followed by Samsung (40%) and Micron (10%). This dominant position stems from its chip-stacking technology, which enables higher bandwidth with lower power consumption.

The IPO's success reflects investor confidence that AI infrastructure demand will remain strong. Additionally, it positions SK Hynix as a key player in the global tech supply chain, directly competing with Samsung and Micron. The company has already announced plans to expand HBM production in South Korea and the US, with a $15 billion investment over the next three years.

Historically, the memory chip market has been cyclical, with boom periods followed by downturns. The last major recession was in 2019, when DRAM prices fell 40%. However, AI-driven demand could change this pattern. According to SK Hynix CEO Kwak Noh-Jung, cited by Reuters, the company expects HBM demand to multiply tenfold by 2028.

Consequences for the market and companies

For Nvidia and the AI ecosystem: SK Hynix's strength ensures a stable supply of HBM memory, crucial for Nvidia's upcoming GPU launches, such as the Blackwell series. A potential HBM shortage could slow AI data center deployments. In fact, in 2025, HBM shortages contributed to delays in H100 GPU deliveries, as reported by The Wall Street Journal.

For investors: The IPO offers direct exposure to the AI boom through an infrastructure provider, not just software companies. However, the memory chip sector is cyclical and highly volatile. Investors should consider that SK Hynix faces geopolitical risks, such as potential export restrictions on chips to China, which accounts for 30% of its revenue.

For the semiconductor industry: The IPO could encourage other Asian chipmakers, like TSMC, to consider US listings for deep capital access. TSMC already trades on the New York Stock Exchange since 1997, but might seek a primary listing to broaden its investor base.

What readers should know

• SK Hynix is not a new company; it was founded in 1983 and is already listed on the Korea Exchange. Its US listing aims to attract global investors and improve liquidity.
• The company remains subject to geopolitical tensions between the US and China. Any restrictions on memory chip exports could affect its revenue. In 2024, the US government imposed new sanctions on AI chip exports to China, temporarily impacting SK Hynix's stock.
• SK Hynix's HBM dominance stems from its chip-stacking technology, which enables higher bandwidth with lower power consumption. The company invests 15% of its revenue in R&D, according to its annual report.
• SK Hynix's IPO is the largest by a foreign company in the US, surpassing Alibaba (2014, $25 billion), but still far from the absolute record of Saudi Aramco (2019, $29.4 billion in Saudi Arabia).

“SK Hynix's IPO is a barometer of confidence in the AI narrative. If HBM demand holds, the company could become a pillar of the tech stock market.” — Analyst at TheVortiq.