SK Hynix's record $26.5B US IPO breaks the Korea Discount

SK Hynix just pulled off the biggest Wall Street debut ever by a non-American company, raising $26.5 billion in its U.S. market entry. The South Korean memory chip giant sold ADRs at $149 each, with demand overshooting available shares by more than seven times. The stock opened 14% above its IPO price, and the momentum kept climbing. This is wild because Korean companies usually trade at a discount (the so-called Korea Discount) due to governance and geopolitical risks. But SK Hynix is different — it’s a key supplier of high-bandwidth memory for Nvidia’s AI GPUs, making it indispensable in the AI boom. The cash will fund new fabs and packaging facilities in South Korea, plus EUV scanners for next-gen chips. Meanwhile, U.S. Commerce Secretary Howard Lutnick is courting SK Hynix and rival Samsung to build factories stateside, even as both just pledged over $550 billion for Korean manufacturing. Why it matters: This IPO shatters the old narrative that Asian tech companies can’t command premium valuations in U.S. markets, proving AI supply chains are rewriting the rules of global investing.