[Edaily Reporter Park Sun-Yeop ] Expectations for a revaluation of SK hynix’s stock are growing amid forecasts that the company could list its American Depositary Receipts (ADRs) as early as next month. This is driven not only by expectations of improved earnings fueled by the company’s competitiveness in High-Bandwidth Memory (HBM), but also by the prospect that, following the ADR listing, the stock could become a target for investment by U.S. semiconductor exchange-traded funds (ETFs) and passive funds.

According to MP Doctor on the 21st ( SK hynix(000660)), the stock closed at 2,764,000 won on the 19th, up 79,000 won (2.94%) from the previous trading day, setting a new all-time high based on the closing price. Its year-to-date gain stands at 324.58%, significantly outpacing SamsungElectronics’ 195.25% increase over the same period. The gap with SamsungElectronics—which has held the top spot in market capitalization since 2000—is rapidly narrowing, with SK hynix’s market capitalization, including preferred shares, now reaching 87.64% of SamsungElectronics’ level.
Market observers cite expectations for a U.S. ADR listing as one of the factors behind SK hynix’s relative strength. While the company’s competitiveness in the HBM market has significantly boosted its earnings outlook, analysts interpret that the potential to expand its investor base through a U.S. listing is now providing additional momentum to the stock price. An ADR is a depositary receipt traded on the U.S. market based on underlying shares in Korea; it serves as a channel through which U.S. investors can invest in SK hynix in U.S. dollars without having to purchase Korean stocks directly.
Earlier this March, SK hynix reportedly submitted a private application for a Nasdaq listing and selected Citigroup, JPMorgan, Goldman Sachs, and Bank of America (BofA) as lead underwriters. The offering size is estimated at approximately 2.5% of the total outstanding shares, with the amount raised projected to be around 40 trillion won. The company reportedly concluded a roadshow (NDR) for overseas institutional investors earlier this month and is currently undergoing the review process by the U.S. Securities and Exchange Commission (SEC).
The expected benefit following the U.S. listing is an expansion of the investor base. Until now, the primary channel for overseas passive funds flowing into SK hynix has been the “iShares MSCI South Korea ETF” (EWY). While EWY is a leading ETF investing in the Korean stock market, its status as a single-country ETF imposes limitations due to restrictions on individual stock weightings. This is because U.S. fund management regulations make it difficult for a single stock’s weighting to exceed 25%, and there are also limits on the combined weighting of stocks holding 5% or more.
Consequently, if the stock prices of SamsungElectronics and SK hynix surge, increasing their weightings within EWY, the ETF must reduce its holdings of these stocks during the rebalancing process. On the other hand, once SK hynix becomes tradable in the U.S. market following its ADR listing, its potential for inclusion in U.S. semiconductor ETFs, AI and technology ETFs, and global growth funds could expand. Unlike EWY, semiconductor sector ETFs face relatively fewer constraints regarding weighting caps on specific Korean stocks.
There is also speculation about potential inclusion in the Philadelphia Semiconductor Index. The “iShares Semiconductor ETF” (SOXX), the flagship ETF tracking this index, has assets under management totaling $43.7 billion. Kim Young-geon, an analyst at MIRAE ASSET SECURITIES, explained, “SK hynix’s ADR ranks among the top 25 in terms of market capitalization among the index’s constituents,” adding, “If it is listed within this year, we can expect the possibility of inclusion during the regular review in September 2027.”
There are also expectations that the valuation gap will narrow. While SK hynix is regarded as a key player in NVIDIA’s supply chain within the HBM market, its listing on the Korean stock market has been a factor limiting accessibility for U.S. investors. Following the ADR listing, the company is likely to be more directly compared with U.S. semiconductor stocks such as Micron. Based on the 12-month forward price-to-earnings ratio (P/E), SK hynix stands at 6.9x, which is lower than Micron’s ratio of around 11x.
Kim Seon-woo, an analyst at Meritz Securities, predicted, “The ADR listing will broaden the base of global investors, and we can expect demand from passive funds if the stock is included in the Nasdaq and the Philadelphia Semiconductor Index.” He added, “SK hynix’s ADRs are expected to list in August following SEC approval in June,” noting that “funds holding Micron (a fellow memory sector company) are likely to immediately include SK hynix in their portfolios, which could trigger a sharp revaluation of the stock price.”
However, the ADR listing is not without its drawbacks. Market estimates suggest that SK hynix may issue new shares amounting to approximately 2.5% of its current outstanding shares, provided it maintains the minimum 20% ownership stake held by its holding company, SKSQUARE. If this new share issuance proceeds, existing shareholders could face the burden of diluted per-share value.