SEOUL, July 26, 2026, 00:09 KST
- Markets in Seoul and the United States are shut for the weekend. SK Hynix finished trading on Friday at 1,759,000 won, a drop of 8.34%.
- Shares of its Nasdaq ADRs NASDAQ:SKHY ended at $154.57, falling 8.79%. However, they remained roughly 28.2% higher than parity with Seoul.
- SK hynix plans to announce its second-quarter results on Wednesday, July 29, at 09:00 KST.
SK Hynix opens Monday amid reports of ample supply and ongoing division over prices. U.S. investors continue to pay a substantial premium for similar holdings.
South Korea announced that SK Hynix plans to enter into long-term memory supply agreements with major U.S. technology firms, totaling $750 billion. Nvidia NASDAQ:NVDA is included in the group. The statement offered no specifics on when deliveries would occur or how the total would be divided per year.
The figure is strikingly large. Based on Friday’s exchange rates, it amounts to approximately 11.3 times SK Hynix’s projected 2025 revenue. This comparison reflects overall scale rather than confirmed backlog.
The broader partnership between Nvidia and SK encompasses collaborative work on high-bandwidth memory. Additionally, the agreement involves building a two-gigawatt AI data center that will utilize HBM4 chips. The inaugural site is expected to be operational in 2027.
SK Chairman Chey Tae-won stated he “wouldn’t be surprised” if Nvidia’s memory projection ended up being underestimated. He noted that clients were demanding greater supply than anticipated. Reuters
Investor sentiment had shifted to caution. On Friday, SK Hynix declined 8.34% and the KOSPI slid 5.72%. Meanwhile, the U.S. ADR sank 8.79%.
| Security or reference | Friday close | Friday move | Weekly move or spread |
|---|---|---|---|
| SK Hynix, Seoul | 1,759,000 won | -8.34% | -4.5% |
| SK Hynix ADR | $154.57 | -8.79% | +1.4% |
| FX-adjusted ADR parity | $120.54 | — | ADR premium: 28.2% |
| Micron Technology NASDAQ:MU | $920.95 | -6.90% | +6.0% |
Figures are based on Friday closing prices, a 10:1 ADR ratio, and a USD/KRW exchange rate of 1,459.29. Because Seoul markets were shut on July 17, the week’s comparison for Seoul stocks begins from July 16.
One Korean ordinary share is equivalent to ten ADRs. Based on Seoul’s closing price on Friday, the implied value per ADR was $120.54. The U.S.-listed ADR closed $34.03 higher than this implied price.
A shortage is a factor behind the disparity. MarketWatch stated that the Korea Securities Depositary established a 2.5% limit for conversions. For more ADRs to be issued, current holders must convert in reverse.
The premium limits the strength of the initial valuation argument. SK Hynix set the U.S. listing price at $149, collecting roughly $26.5 billion. Shares finished Friday just 3.7% higher than the offer price.
Seoul stocks reflect a steeper decline, closing 41.1% under their June 25 peak of 2,987,000 won during intraday trading. Price swings remain pronounced.
Micron fell on Friday, reflecting continued weakness in memory shares. Still, the stock rose 6% over the week, outperforming SK Hynix’s two listings. Market participants are split on how long high prices for memory will last.
Wednesday’s results will show if revised supply strategies alter financial projections. Investors will watch for information on contract lengths, HBM4 production, prices and capital expenditure.
Risks: The $750 billion total may represent a guideline instead of binding commitments. Memory prices are subject to cycles. The ADR premium may decrease if there are adjustments to conversion rules or supply levels.
Seoul’s initial response comes on Monday. Earnings face scrutiny on Wednesday.
Related articles: NASDAQ:SKHY
