Article by Edward Sheldon
SK Hynix is Coming to the Nasdaq. Here’s the Bull Case
June 29, 2026 | Research Insights
On July 10, South Korean chip powerhouse SK Hynix will be listing American Depositary Receipts (ADRs) on the Nasdaq. This means that US investors will have another option when it comes to investing in memory stocks.
Could there be an opportunity here? Let’s explore the bull case for the stock.
Who is SK Hynix?
A manufacturer of both DRAM and NAND memory products, SK Hynix is one of the largest memory chip companies in the world. Along with Samsung and Micron, it is one of the “Big Three” oligopoly that dominates the global memory industry.
Where SK Hynix stands out against the other two memory giants, however, is High Bandwidth Memory (HBM) – the ultra-fast, high-octane memory that is powering the AI revolution. It made early aggressive bets on HBM and as a result, it has a near-60%1 market share today.
Source: SEC.gov, SK hynix Inc., as of June 24, 2026
As a South Korean company, SK Hynix has a primary listing on the Korea Exchange (KRX) under the ticker symbol 000660. However, on July 10, it will come to the Nasdaq via ADRs.
To back the ADRs, the company is issuing up to 17.79 million2 new shares (approximately 2.5% of its total outstanding shares), with 10 ADRs representing one common share. This is expected to raise up to KRW 45.45 trillion (around USD $29 billion), which could make it the largest ADR offering on record – eclipsing Alibaba’s blockbuster 2014 debut3.
Revenues are Soaring Amid the Memory Shortage
As with Micron and other memory chip stocks, the bull case for SK Hynix largely revolves around high demand for memory (especially HBM), which has become an indispensable pillar of the AI hardware stack. With hyperscalers such as Google and Microsoft buying as much memory as possible in an effort to get an edge in the global AI arms race, SK Hynix’s revenues are soaring.
For the first quarter of 2026, for example, its revenue came in at KRW 52,576 billion4 (approx. USD $34 billion). This represented an increase of 198% year-over-year.
It’s worth noting that it’s not just demand that is fueling the top-line growth here; it’s also supply constraints. For almost a year now, there has been a major global memory shortage, and this is providing memory companies like SK Hynix with far more pricing power.
Looking ahead, no one knows how long the supply shortage will last. However, many experts believe that it could last for several years.
A Close Relationship with Nvidia
A second component to the bull case is SK Hynix’s close relationship with AI chip powerhouse Nvidia. SK Hynix was a major supplier of HBM chips for Nvidia’s H100, H200, and Blackwell GPUs and today it is working closely with the GPU powerhouse to design next-gen memory chips (e.g. HBM4) for Nvidia’s future chip architectures.
Source: SK Hynix Newsroom, as of June 7, 2026
This relationship provides SK Hynix with a predictable, long-term source of demand. And it can help to insulate the company from downturns in the broader, more volatile consumer tech market.
Selling advanced HBM memory chips to Nvidia also boosts the company’s profit margins. Because these customized AI components command significantly higher average selling prices than standard PC or smartphone DRAM.
We can see this impact on its profit margins in recent earnings. In Q1 of 2026, for example, its gross margin was 79% while its operating margin was 72%4.
Source: SK Hynix FY2026 Q1 Earnings, as of June 23, 2026
Who is SK Hynix?
One other factor in the bull case that is worth considering is longer-term contracts with buyers. Whereas historically memory buyers operated on short-term spot markets (which often led to brutal boom-and-bust revenue cycles for suppliers), suppliers are today locking in longer-term contracts in an effort to smooth out demand.
Zooming in on SK Hynix, one company it is reportedly negotiating a longer-term deal with is Microsoft5. This is for the supply of high-density DDR5 memory.
Another company is Google6. Here, the company is reportedly finalizing a five-year agreement for DRAM with reports indicating that discussions include an option to extend the agreement by an additional two years, where SK Hynix would operate as the primary HBM3E supplier for the tech giant.
It’s worth noting that on its website, SK Hynix says that as the AI era accelerates, it is evolving from a memory supplier into a “Full Stack AI Memory Creator.” Its goal is to become a co-designer, co-architect, and ecosystem partner that drives breakthroughs in AI computing together with its customers.
The Valuation Remains Low
In terms of the company’s valuation, it’s relatively low today, despite the fact that the stock has soared over the last year. With the consensus analyst earnings estimate for 2026 sitting at KRW 314,4807 according to Yahoo Finance, the forward-looking price-to-earnings (P/E) ratio is only around eight.
At that valuation, many analysts remain bullish on the stock. At present, the average analyst price target is KRW 3,105,2598 according to Investing.com, which is around 20% above the current stock price.
A Compelling Bull Case
In summary, SK Hynix’s upcoming Nasdaq debut marks a pivotal moment for US investors looking to capitalize on the AI hardware boom. Via ADRs, investors will be able to access a global memory powerhouse that has firmly cemented itself at the epicenter of the AI revolution.
As a dominant force in the high-margin HBM market and an indispensable partner to Nvidia, SK Hynix is well positioned to ride the wave of soaring memory chip demand. With triple-digit revenue growth, stellar profit margins, and a shift toward stabilizing long-term contracts, the company has a lot going for it.
Footnotes:
1Counterpoint Research, Global DRAM and HBM Market Share: Quarterly, as of June 9, 2026
2CNBC, South Korea’s biggest chipmaker SK Hynix plans to raise $29 billion via Nasdaq listing as soon as July 10, as of June 24, 2026
3Nikkei Asia, SK Hynix eyes raising up to $29bn in Nasdaq ADR listing, as of June 24, 2026
4SK Hynix, SK Hynix Announces 1Q26 Financial Results, as of April 22, 2026
5The Korea Economic Daily, SK Hynix in talks with Microsoft, Google for long-term DRAM supply, as of April 6, 2026
6BigGo Finance, Storage Giants Overhaul Business Model: Samsung and SK Hynix Push Microsoft and Google to Lock in 3-5 Year Supply Deals, as of April 9, 2026
7Yahoo Finance, as of June 29, 2026
8Investing.com, as of June 29, 2026
