SK Hynix's NASDAQ Advance... Will it Choke Micron (MU)?

▲ SK Hynix (SK Hynix)/AI Generated Image

The moment Micron Technology (MU) emerged as the protagonist of the artificial intelligence memory rally, SK Hynix is shaking Wall Street's attention with its $30 billion US listing card.

According to economic media outlet MarketWatch on June 24 (local time), SK Hynix is preparing for its NASDAQ listing in the US next month. MarketWatch analyzed that SK Hynix's US listing could be a double-edged sword for Micron's stock price.

SK Hynix is pursuing to raise approximately $30 billion through an American Depositary Receipt (ADR) listing. Once the listing is complete, US investors will be able to invest in SK Hynix shares without direct access to the Korean stock market. MarketWatch pointed out that this change could open up wider institutional funding and higher valuation multiples for SK Hynix.

The problem is Micron. Until now, Micron has been the easiest stock for US investors to choose when investing in AI memory stocks. If SK Hynix lists on NASDAQ, investment options will expand, and there's a possibility that some funds will shift from Micron to SK Hynix.

Conversely, SK Hynix's listing could also be a boon for Micron. MarketWatch believes that if SK Hynix receives greater attention in the US market, investor understanding and interest in the overall memory market could increase. This means that as demand for AI servers and the shortage of High Bandwidth Memory (HBM) become more prominent, Micron could also benefit from a re-evaluation of the same industry.

With Micron's recent strong performance having pushed up SK Hynix's stock price, Wall Street is now watching to see whether SK Hynix's US listing will intensify competition or elevate the overall value of the memory semiconductor sector.

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