Hynix debut is a bet that AI breaks boom-and-bust chip cycle

The report covers SK Hynix’s market debut, describing it as a bet that AI will break the traditional boom-and-bust cycle in memory chips. The South Korean memory maker completed what the article calls the largest foreign company public listing in the US market history, with shares rising 13% on the first day. SK Hynix raised $26.5 billion through an American depositary receipt offering, much of which it plans to use to expand chip manufacturing, reversing industry caution after prior supply gluts. CEO Kwak Noh-Jung told Bloomberg that conditions have “clearly changed,” with persistent memory supply shortages in the ChatGPT era and customers seeking long-term supply agreements; he suggested the deficit could extend beyond 2030. The article contrasts this outlook with warnings from figures such as Michael Burry and Ray Dalio about an AI bubble. It notes AI spending from Alphabet, Amazon, Meta, Microsoft, and Oracle added about $350 billion in debt over five years, benefiting memory makers including Samsung and Micron.