SEOUL, July 26, 2026 — Markets in Seoul and the United States are closed for the weekend. SK Hynix (KRX:000660) shares ended Friday's session at 1,759,000 won, a decline of 8.34%. Meanwhile, its Nasdaq-listed American Depositary Receipts (NASDAQ:SKHY) closed at $154.57, falling 8.79%. Despite the drop, the ADRs maintained a significant premium of approximately 28.2% over the equivalent value of Seoul-listed shares.
The premium persists amid a backdrop of ample memory supply and ongoing price negotiations. U.S. investors continue to pay a premium for SK Hynix ADRs, reflecting strong demand for exposure to the memory chipmaker, particularly in light of recent developments.
0 Billion Supply Initiative
South Korea announced that SK Hynix plans to enter into long-term memory supply agreements with major U.S. technology companies, totaling $750 billion. Nvidia (NASDAQ:NVDA) is among the firms included. The announcement did not provide specifics on delivery timelines or annual allocations, but the sheer scale of the figure has captured market attention.
Based on Friday's exchange rates, the $750 billion figure represents approximately 11.3 times SK Hynix's projected 2025 revenue. This comparison underscores the potential magnitude of the deals, though it reflects overall scale rather than confirmed backlog.
The broader partnership between Nvidia and SK Hynix includes collaborative work on high-bandwidth memory and the construction of a two-gigawatt AI data center that will utilize HBM4 chips. The first such facility is expected to become operational in 2027.
SK Hynix Chairman Chey Tae-won stated he "wouldn't be surprised" if Nvidia's memory projection turned out to be underestimated, noting that clients are demanding greater supply than anticipated, according to Reuters.
Market Reaction and ADR Premium
Investor sentiment shifted to caution on Friday. SK Hynix shares in Seoul fell 8.34%, and the broader KOSPI index slid 5.72%. In the U.S., the ADR dropped 8.79% but still closed at a notable premium.
One Korean ordinary share is equivalent to ten ADRs. Based on Seoul's closing price of 1,759,000 won and a USD/KRW exchange rate of 1,459.29, the implied value per ADR was $120.54. The U.S.-listed ADR closed at $154.57, representing a $34.03 premium.
A shortage of ADR conversion capacity is a factor behind the disparity. MarketWatch reported that the Korea Securities Depositary has established a 2.5% limit on conversions, meaning new ADRs can only be issued if current holders convert in reverse.
The premium limits the strength of the initial valuation argument. SK Hynix set its U.S. listing price at $149, raising approximately $26.5 billion. Shares closed Friday just 3.7% above that offer price, while Seoul shares have fallen 41.1% from their June 25 intraday peak of 2,987,000 won.
Competitive Landscape and Earnings Preview
Micron Technology (NASDAQ:MU) also fell on Friday, reflecting continued weakness in memory shares. However, Micron rose 6% over the week, outperforming SK Hynix's two listings. Market participants remain divided on how long high memory prices will persist.
SK Hynix is scheduled to announce its second-quarter results on Wednesday, July 29, at 09:00 KST. The earnings report will reveal whether revised supply strategies have altered financial projections. Investors will focus on contract lengths, HBM4 production timelines, pricing trends, and capital expenditure plans.
Risks and Outlook
Several risks could affect the stock. The $750 billion total may represent a guideline rather than binding commitments. Memory prices are inherently cyclical. The ADR premium could decrease if conversion rules are adjusted or supply levels change.
Seoul markets will provide the initial reaction on Monday, with earnings under scrutiny on Wednesday. The outcome will likely shape investor sentiment for the weeks ahead.
