SK Hynix raises $26.5B in record foreign IPO, signaling AI memory boom

SK Hynix's record IPO reflects a fundamental shift in memory-chip economics driven by AI demand. Historically, the memory industry has been defined by boom-and-bust cycles with thin margins, but the earnings figures now support premium valuations. Micron's fiscal third-quarter revenue of $41.5 billion（約6.6兆円）—up about 350% year over year—and guidance for about $50 billion（約8兆円） in the next quarter with gross margins of about 86% underscore how the AI boom has transformed the sector's profitability.

The intensity of demand for the SK Hynix offering carries a dual message. The more than seven times oversubscription and the rare pricing premium of nearly 3% to Seoul levels show that global capital sees sustained opportunity in AI memory. SK Hynix's Seoul-listed shares have more than tripled this year and the company crossed a $1 trillion（約160兆円） market value in May, indicating confidence among existing shareholders as well.

Yet the article raises a structural concern: the proceeds of this record raise will eventually become new supply, and memory has always been cyclical. Even after the past year's historic run, Micron trades at only about 6 times forward earnings, which the article interprets as the market's signal that earnings at these levels are not expected to last forever. The sequential slowdown in Micron's growth rate—from 74% quarter-over-quarter in fiscal Q3 to guided 21% in Q4—hints that the acceleration phase may be moderating. Large capacity investments like SK Hynix's typically mark the moment when a boom begins to seed its own correction.