South Korea

SK Hynix Plans $29B Nasdaq ADR Listing

Is SK Hynix poised to profit from the AI boom or headed for catastrophe when the bubble bursts?

Published 3 hours ago

Story

Above: SK Hynix's logo outside its Bundang office in Seongnam, South Korea, on Jan. 26, 2024 Image credit: JUNG YEON-JE/AFP/Getty Images

The Spin

Pro-establishment narrative

With the AI market in full bloom, the time is right for SK Hynix, a company already raking in $34.5 billion in quarterly revenue, to list on the Nasdaq. This move will both generate the funds required to develop new, advanced plants and fabs in South Korea and equip it with more advanced gear, while positioning it at the heart of the AI revolution happening in the U.S.

DART US Securities and Exchange Commission

Establishment-critical narrative

The spiraling expansion of the AI market suggests the bubble is close to bursting, given that the speculation fuelling it depends entirely on unsustainable AI infrastructure spending that cannot last indefinitely. When it pops, the consequences will be catastrophic, perhaps even eclipsing the fallout of the dot-com boom, leaving companies like SK Hynix in deep trouble.

The Hill Seeking Alpha