tech
SK Hynix surges 12% after Micron earnings; blockbuster Nasdaq listing
Shares of South Korean chip giant SK Hynix surged 12% on Thursday after the company said it is seeking to raise as much as $29.4 billion.
TL;DR
- SK Hynix shares surged more than 12% on Thursday.
- The company plans a U.S. stock market listing to raise up to $29.4 billion via American depositary receipts on Nasdaq.
- Stronger-than-expected quarterly results from U.S. rival Micron boosted expectations for the AI memory chip market.
- Micron's revenue more than quadrupled in its fiscal third quarter due to surging AI chip demand.
- SK Hynix aims to broaden its investor base and have its value properly evaluated through the Nasdaq listing.
- The company is increasing investment in AI chips, developing a semiconductor cluster in South Korea and a chip-packaging plant in Indiana.
- Analysts see the ADR listing as a way to increase U.S. market access and narrow the valuation gap with Micron.
- SK Hynix shares are up over 300% year-to-date.
- Other Asian tech stocks, including Samsung Electronics, TSMC, and Japanese chip-equipment makers, also saw gains.