SK Hynix shares rise ahead of Nasdaq debut

Summary

CNBC's Kristina Partisinevelos reports on SK Hynix's Nasdaq debut. She explains the company's dominant position in high-bandwidth memory, its competitive advantages over Micron, and how the US listing provides a catalyst to close the valuation gap. The report also covers the capex plans that keep memory supply tight until late 2027, supporting elevated prices, while noting the longer-term risk of a memory cycle crash.

• SK Hynix raised $26.5 billion at $149 per ADS, the second-largest share sale after SpaceX.
• It is the world leader in high-bandwidth memory with 58% market share, versus Micron and Samsung at ~21% each.
• The stock trades around 5-6x forward earnings, cheaper than Micron's 7x, and the US listing may close that discount.
• Analysts anticipate up to $14 billion in passive buying as SK Hynix enters major indices.
• Capex goes to new fabs and ASML equipment; no new supply arrives before late 2027, keeping memory prices high.
• Long-term risk: memory supercycles historically end in crashes when supply eventually catches up.