SK Hynix surged nearly 13% on its first day of trading on the Nasdaq, demonstrating that global investment fervor for the artificial intelligence memory industry remains rock-solid. All three major New York stock indexes closed higher, buoyed by strength in AI-related mega-cap tech stocks and optimism heading into the second-quarter earnings season, even as geopolitical tensions simmered in the Middle East. The S&P 500 edged closer to its all-time high.
On Friday (local time), the Dow Jones Industrial Average rose 149.60 points, or 0.29%, to close at 52,637.01 at the New York Stock Exchange. The S&P 500 gained 31.75 points, or 0.42%, to 7,575.39, hovering near record territory, while the tech-heavy Nasdaq Composite added 74.72 points, or 0.29%, to finish at 26,281.61. For the week, the S&P 500 advanced roughly 1.23% and the Nasdaq climbed 1.74%, marking two consecutive weeks of gains for both.
The day’s marquee event was unquestionably SK Hynix’s Nasdaq debut. The company’s American Depositary Receipts (ADRs) opened at $170, about 14% above the initial public offering price of $149, before spiking as high as $177 during the session. The stock pared some gains as profit-taking emerged but still closed at $168.01, up 12.76% from the IPO price. Trading volume was heavy, surpassing 106 million ADRs.
The listing raised $26.5 billion, making it the largest-ever U.S. IPO by a foreign company. According to Bloomberg data, it ranks as the third-largest public offering globally, trailing only SpaceX and Alibaba’s 2014 debut. The offering was heavily oversubscribed—more than seven times—drawing participation from global long-term funds, sovereign wealth funds, pension funds, and tech-focused investors. Baillie Gifford, Coatue Management, and Situational Awareness Partners were among the cornerstone investors.
SK Hynix’s successful debut reaffirmed that long-term growth expectations for the AI memory market remain intact despite recent concerns about a potential slowdown in AI investment. The company is the world’s leading supplier of High Bandwidth Memory (HBM), a critical component in AI graphics processing units made by Nvidia and AMD. Explosive demand for HBM, fueled by the proliferation of generative AI and expanding AI data center investments, has sent SK Hynix’s Seoul-listed shares up roughly 630% over the past year. Although the stock has corrected about 25% from its record high on fears of decelerating AI spending, U.S. investors have once again placed a high premium on the memory industry’s structural growth potential.
“There was clearly latent demand from U.S. investors,” said Steve Sosnick, chief strategist at Interactive Brokers. “The fact that first-day volume reached roughly half the ADRs in circulation suggests active trading by both long-term investors and short-term participants.” Dan Coatsworth, market head at AJ Bell, added, “The stronger-than-expected demand for the U.S. share sale could mean the memory semiconductor rally isn’t peaking but merely taking a breather.”
However, some market participants raised concerns that SK Hynix’s mega-listing could siphon investment capital away from incumbent U.S. memory chip makers. Indeed, rival Micron Technology fell 1.31% to close at $978.69, while Intel tumbled 2.40% to $109.84. In contrast, Nvidia—which has an HBM supply agreement with SK Hynix—surged 4.02% to $210.93, helping to lift the S&P 500.
At the Nasdaq opening bell ceremony, SK Group Chairman Chey Tae-won remarked, “AI is merely a four- or five-year-old child. We still have a long way to go before reaching Artificial General Intelligence, and memory demand will continue to grow along that journey.” SK Hynix CEO Kwak Noh-jung positioned HBM as being “at the center of the AI revolution” and outlined a “Memory-as-a-Service” business model aimed at boosting AI data center efficiency as a new growth strategy.
Chairman Chey also left the door open for potential future capital raising in U.S. markets. “We need to show investors better returns to drive further demand,” he said. “For now, maintaining a stable share price is the top priority. Once our performance is proven, additional listings or fundraising could be possible down the road.”
AI bellwethers posted standout gains. Meta Platforms surged 5.99% to $669.31, putting it on track for its strongest weekly gain since early 2024. Sentiment improved markedly after Bank of America reiterated a “buy” rating and Reuters reported, citing internal documents, that the company is working on cost-structure improvements that could halve AI model development expenses. The news fueled expectations that profitability can improve alongside expanding AI investments.
Markets largely shrugged off renewed Middle East tensions and hawkish rhetoric from U.S. President Donald Trump toward Iran. Oil prices briefly spiked after Trump indicated that a ceasefire between the U.S. and Iran had effectively ended, but they later retreated after he said Iran had requested continued negotiations and he agreed. West Texas Intermediate crude for August delivery settled 0.9% lower at $71.41 per barrel. Equities held their gains, signaling significantly reduced sensitivity to geopolitical risk.
“The fact that the market reaction was limited this week despite renewed Iran tensions is evidence that investors are prioritizing corporate earnings over geopolitical risks,” said Clark Bellin, chief investment officer at Bellwether Wealth.
Wall Street is now turning its focus to the second-quarter earnings season, which kicks into high gear next week. According to LSEG I/B/E/S, analysts expect S&P 500 constituent earnings to have surged 24% year-over-year, with technology companies driving the bulk of that growth. However, with valuations already elevated, whether actual results can meet these lofty expectations remains the key variable.
“The earnings environment remains favorable, but investors are unlikely to keep pushing the market higher until they see companies actually meeting raised expectations,” said Mark Hackett, chief market strategist at Nationwide. Kenny Polcari, chief market strategist at SlateStone Wealth, noted, “Unlike typical quarters, more companies have raised guidance than warned about deteriorating earnings this time around, which signals considerable confidence from corporate management.”
Opinions remain divided among experts on whether the AI memory super-cycle will persist. “Memory market supply-demand conditions will remain very tight through at least 2028,” said Ryuta Makino, analyst at Gabelli Funds. “AI is transforming the memory industry from a cyclical business tied to PCs and smartphones into a structural growth industry.” Conversely, Dizhou Zhao, portfolio manager at Thornburg Investment Management, struck a cautious tone, warning that “weakening AI-related demand is the biggest risk factor that could end the current memory boom.”
With SK Hynix’s Nasdaq debut, U.S. investors now have another major pure-play memory semiconductor investment option alongside Micron. According to LSEG data, despite its HBM market dominance, SK Hynix trades at a forward price-to-earnings ratio of approximately 5.8 times—below Micron’s roughly 7 times—drawing attention to whether this valuation gap will narrow.