SK Hynix Stock Reverses 3% Drop After Capacity Tripling Plan Revealed

TLDR

• SK Hynix stock rose 2.6% to 21 million won Thursday after early losses, reversing a 3.5% intraday drop
• SK Group Chairman Chey Tae-won confirmed plans to triple wafer capacity by 2034 to meet AI chip demand
• The company is targeting a U.S. stock market debut as early as August, potentially raising up to $14 billion
• SK Hynix controls 57% of global high-bandwidth memory revenue and is Nvidia’s largest memory partner
• The stock has climbed 240% this year and hit a $1 trillion market cap for the first time in May

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SK Hynix stock swung sharply Thursday, falling as much as 3.5% before reversing course to close up 2.6% at 21 million won. The turnaround came after SK Group Chairman Chey Tae-won told Nikkei Asia the company plans to triple its wafer capacity by 2034.

SK hynix Inc. (000660.KS)

The capacity expansion is tied directly to growing demand for high-bandwidth memory chips used in AI servers. SK Hynix is currently building four semiconductor fabrication plants in South Korea’s Yongin region, with the first expected to come online in early 2027.

Chey said the company pulled the project timeline forward by a decade. The original plan was set to run until 2045.

The rebound in SK Hynix helped the broader KOSPI index trim some of its earlier losses, though the index still closed in the red. Rival Samsung Electronics fell over 1% on the day.

U.S. Listing Could Arrive as Soon as August

Beyond the capacity news, SK Hynix is moving toward a U.S. stock market listing. The company filed confidentially with the SEC in March, and regulatory clearance could come during the week of June 22, according to Reuters.

The offering could raise as much as $14 billion, according to a source cited by Reuters at the time of the confidential filing.

A U.S. listing would give SK Hynix access to a wider investor base and let it capitalize on strong demand for AI-related equities. If it lists in August as expected, it would join a busy window that includes expected debuts from OpenAI, Anthropic, and SpaceX.

Nvidia Partnership and Market Position

SK Hynix commands 57% of global high-bandwidth memory revenue as of Q4 last year. Samsung and Micron hold the remaining portion.

The company is Nvidia’s largest memory partner. Nvidia CEO Jensen Huang confirmed the company spends billions of dollars annually with SK Hynix. Last week, the two companies announced a multi-year technology partnership to develop next-generation memory chips for AI data centers, covering Nvidia’s Vera Rubin AI supercomputers and Vera CPUs.

SK Hynix stock has climbed 240% this year. In late May, its market cap crossed $1 trillion for the first time, making it only the third Asian company to reach that level after TSMC and Samsung.

The stock pulled back roughly 11% last week as doubts around the AI trade resurfaced and fears over rising global interest rates weighed on tech.

Thursday’s report on the capacity expansion helped stabilize sentiment around the stock.

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