SK Hynix US listing more than seven times oversubscribed, source says

Demand for SK Hynix's massive $28 billion U.S. share sale significantly outstripped supply, being oversubscribed more than seven times. This overwhelming investor appetite underscores the company's critical position within the burgeoning artificial intelligence supply chain.

The South Korean chipmaker's offering is poised to become the world's second-largest share sale, surpassed only by SpaceX's recent $85.7 billion IPO. The substantial funds raised will be channeled into building new factories and acquiring advanced equipment, essential steps to meet the exponential growth in demand for AI chips.

While semiconductor stocks globally have experienced some volatility recently, companies like SK Hynix and its rival Samsung Electronics have achieved remarkable gains. This surge is fueled by the insatiable demand for computer chips powering AI data centers, which has led to soaring profits for these manufacturers. SK Hynix shares, despite a recent dip of about a quarter in the last two weeks, remain up an astonishing 680 percent over the past 12 months.

SK Hynix has solidified its status as a leading supplier of high-bandwidth memory (HBM) chips to Nvidia. This achievement is the result of 14 years of strategic investment and development, a path that was once met with skepticism but has ultimately placed the company at the epicenter of the global AI gold rush. Details regarding the exact oversubscription multiple were initially reported by Bloomberg.

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Demand for SK Hynix's $28 billion U.S. share sale was more than seven times available shares, a person familiar with the matter said, underscoring huge investor appetite for one of the most important companies in the AI supply chain.