SK Hynix plans $28B U.S. IPO to capitalize on AI-driven memory demand

South Korean memory chipmaker SK Hynix announced plans to sell nearly 17.8 million American depositary receipts (ADRs) in a U.S. IPO, with pricing expected on Thursday and trading to begin Friday. The offering could raise around $28 billion based on SK Hynix’s closing share price from the prior Friday in Seoul, according to Bloomberg.

SK Hynix will offer ADRs, each representing one-tenth of a common share, allowing U.S. investors to participate without trading directly on overseas exchanges. The company framed the IPO as a response to surging demand for memory chips tied to AI infrastructure.

The company reported first-quarter revenues up nearly 200% compared to the same period last year and noted its stock had risen about 260% so far in 2026. Analysts attribute this growth to the AI-driven demand for high-bandwidth memory (HBM), DRAM, and NAND chips, which are critical components in AI systems.

Hyperscalers including Amazon, Microsoft, Google, and Oracle are rapidly expanding AI data center capacity, creating a shortage of memory chips and pushing prices higher. The supply crunch has been described by some as 'RAMageddon,' with downstream effects such as Apple raising prices on Macs and iPads due to increased component costs.

To address the demand, South Korean tech companies including SK Hynix and Samsung have pledged to invest over $550 billion in new manufacturing capacity. However, industry observers caution that by the time these facilities come online, AI memory requirements could shift, potentially leading to oversupply and price declines.