Market Value Surpasses $1 Trillion

SK Hynix’s market value topped $1 trillion in South Korea in May, driven by the AI chip boom, according to The Guardian, and the company’s shares rose 2.7% on the Kospi index after the announcement. Along with Samsung Electronics and US chip maker Micron, SK Hynix now ranks among the exclusive group of companies with a $1 trillion market cap.

SK Hynix’s share price more than tripled in South Korea this year, contributing to a 70% rise in the Kospi index, according to the BBC, while the company’s stock has outperformed rivals such as Samsung and Micron, whose shares have more than doubled recently.

Strategic Use of Funds

The company is also part of an 800tn won public-private investment to build a new chip hub in southwest South Korea. SK Hynix plans to use the proceeds from the US offering to fund construction of a new fabrication hub in Yongin near Seoul and an advanced packaging facility in Cheongju, according to The Guardian.

Counterpoint Research analyst MS Hwang said SK Hynix aims to surpass Samsung in the memory chip market. “Along with the HBM leadership it has demonstrated until recently, the company is now planning to take the lead in terms of volume as well,” Hwang told AFP. “Funds from its US listing can support such a goal.”

Investor Appetite and AI Boom

Investor demand for SK Hynix’s shares was reportedly seven times higher than the number of shares available, reflecting strong appetite for a key player in the AI supply chain, according to the BBC. The company is a major supplier to AI chip giant Nvidia and benefits from the hundreds of billions being invested in AI technologies.

Seoul National University finance professor Jaewon Choi noted that the US listing provides SK Hynix with easier access to investment from the world’s largest economy, which has fewer barriers than South Korea. Traders are watching the listing as an indicator of whether enthusiasm for memory chip makers will continue.

The AI boom has led to a rush of companies raising capital on the stock market — In June, SpaceX raised $85.7 billion in the world’s biggest listing. Meanwhile, AI developers Anthropic and OpenAI are preparing to go public with valuations exceeding $1 trillion.