The company powering Nvidia's AI chips wants a $28 billion Wall Street debut

SK Hynix is set to launch a $28 billion US listing after a sharp rally driven by AI chip demand. The offering underlines how companies supplying the hardware behind artificial intelligence are drawing huge investor interest.

In Short

• SK Hynix to launch $28 billion Nasdaq listing this week
• Supplies high-bandwidth memory chips to Nvidia, Google
• SK Hynix's listing among world's largest equity offerings

The global artificial intelligence (AI) boom is creating another stock market heavyweight.

South Korean chipmaker SK Hynix, one of Nvidia's biggest suppliers, is set to launch a massive $28 billion listing in the US this week in what is expected to be one of the world's largest new share sales. The company is tapping into soaring investor demand for AI-linked businesses after its stock surged about 273% this year.

SK Hynix plans to sell 17.79 million new shares through American Depositary Receipts (ADRs) on the Nasdaq. The final price is expected to be set later this week before trading begins on Friday.

WHY IS SK HYNIX LISTING IN THE US?

The 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 firms such as Nvidia grabbed headlines, SK Hynix quietly emerged as one of the biggest winners by supplying the advanced memory chips needed to power AI systems.

The company's shares have risen around 273% this year, making it one of the best-performing technology stocks globally. The Nasdaq listing is expected to help it capitalise on that investor enthusiasm while raising fresh capital for expansion.

WHAT DOES SK HYNIX DO?

Although it is less well known than Nvidia or Samsung Electronics, SK Hynix plays a crucial role in the AI supply chain.

The company manufactures High Bandwidth Memory (HBM) chips, a specialised type of memory that allows AI processors to quickly access and process massive amounts of data. These chips are essential for training and running advanced AI models.

Its 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 BIGGEST SHARE SALES IN THE WORLD

The proposed listing is expected to rank among the world's largest equity offerings.

According to Reuters, it would be second only to SpaceX's $85.7 billion fundraising last month and larger than Saudi Aramco's $25.6 billion IPO in 2019 as well as Alibaba's landmark listing in 2014.

The size of the offering reflects the enormous investor appetite for companies that are directly linked to artificial intelligence infrastructure.

BETTING BIG ON AI

SK Hynix is not just raising money—it is also preparing for the next phase of AI demand.

Last week, the company announced plans to invest 100 trillion won (around $64.4 billion) to build new semiconductor manufacturing facilities, including a new NAND flash memory plant. The investment forms part of South Korea's broader strategy to strengthen its leadership in AI chips and advanced semiconductor manufacturing.

The listing highlights how artificial intelligence is reshaping global markets.

Companies building the chips that power AI are attracting billions of dollars in investment as technology firms race to expand computing capacity.

For Indian investors, the story is a reminder that while domestic IT companies are focused on AI software and services, the biggest beneficiaries globally have so far been semiconductor companies supplying the hardware behind the AI revolution.

As the AI race intensifies, investors will closely watch whether companies like SK Hynix can continue delivering strong earnings to justify the lofty valuations that the AI boom has created.

- Ends