--- title: "Wall Street welcomes SK Hynix's listing. Will Micron and SanDisk become cash cows?" type: "News" locale: "en" url: "https://longbridge.com/en/news/292004927.md" description: "SK Hynix plans to go public on NASDAQ through ADR, expecting to raise nearly $29 billion. Driven by AI demand, memory stocks have surged, and the market is concerned whether new funds will crowd out existing positions. Analysts believe that investors may reduce their holdings in significantly risen stocks like Micron and SanDisk to allocate to SK Hynix, leading to outflow pressure on the former" datetime: "2026-07-08T03:00:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292004927.md) - [en](https://longbridge.com/en/news/292004927.md) - [zh-HK](https://longbridge.com/zh-HK/news/292004927.md) --- # Wall Street welcomes SK Hynix's listing. Will Micron and SanDisk become cash cows? According to a report by Benzinga, South Korea's SK Hynix is set to list on the Nasdaq through American Depositary Receipts (ADR), aiming to raise nearly $29 billion, making it one of the largest memory industry IPOs in recent years. This listing primarily focuses on its DRAM and HBM businesses. ![cover image of news article](https://imageproxy.pbkrs.com/https://cimg.cnyes.cool/prod/news/6526262/l/83e13f64d1fa13f0feb420d7e731a2ff.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Wall Street welcomes SK Hynix's listing; will Micron and SanDisk become cash cows? (Image: Shutterstock) SK Hynix's decision to go public in the U.S. comes at a time when the memory sector is experiencing a super cycle driven by AI. Fueled by demand from AI data centers, the stock prices of Micron (Micron) (MU-US), Sandisk (SNDK-US), Western Digital (WDC-US), Seagate Technology (STX-US), and the Roundhill Memory ETF (DRAM-US) have all surged significantly. The current market concern is whether new funds will continue to flow into SK Hynix or if investors will choose to sell existing holdings to free up capital for the newly listed stock. In the short term, the biggest risk facing the market may be the crowding-out effect. Memory has become one of the hottest investment themes for laying out AI infrastructure, with DRAM prices continuing to soar, and the Roundhill Memory ETF has surpassed $5 billion in assets under management just weeks after its establishment For investors who already hold Micron, SanDisk, and other memory stocks, and have enjoyed several times the increase, the most likely strategy at this stage of the economic cycle is to reduce existing profitable positions and instead allocate to SK Hynix, rather than further increasing the overall weight of the memory sector in their portfolios. In this situation, Micron and SanDisk may be the first to be affected. Both companies have been viewed by the market as the main beneficiaries of the AI server memory shortage, and their stock prices have accumulated considerable gains, making them the most likely sources for investors to adjust their holdings and raise funds for SK Hynix's nearly $30 billion IPO. In contrast, Western Digital and Seagate primarily focus on the storage device and hard disk drive (HDD) market, and current market sentiment is relatively conservative. Therefore, their stock prices are more likely to fluctuate with the overall semiconductor sector rather than becoming the main targets for capital rotation. As for the Roundhill Memory ETF, since its investment strategy covers the entire memory industry, it is expected to include SK Hynix while also providing investors with a tool to diversify the risk of individual stock volatility. A deeper question is whether SK Hynix's IPO in the U.S. signifies a reshuffling of leadership within the memory sector or is merely a short-term consolidation of U.S. memory stocks. From a fundamental perspective, SK Hynix's IPO does not change the core factors driving this round of memory supercycle, including the continuous expansion of AI data centers, long-term tight DRAM capacity, and the overall pricing power of the memory market. Most analysts expect these trends to continue at least until 2027. After SK Hynix's IPO, while it may enjoy higher valuation multiples and a broader shareholder base, the true determinants of who can lead in gross margin and profit growth will still be supply discipline, capital expenditure strategy, and execution capability. From this perspective, SK Hynix's IPO in the U.S. appears more like a capital market event rather than a structural turning point that changes the industry landscape. In the short term, the capital crowding effect brought by fundraising may cause the stock prices of Micron, SanDisk, and the overall memory sector to temporarily deviate from their recent strong trends, especially after experiencing significant increases. Once the market completes its capital allocation and index component adjustments, the performance of related stocks will still return to fundamental factors such as AI data center demand and DRAM price cycles, which are the core driving forces behind the recent surge in memory stocks ### Related Stocks - [SNDK.US](https://longbridge.com/en/quote/SNDK.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [MULL.US](https://longbridge.com/en/quote/MULL.US.md) - [MUD.US](https://longbridge.com/en/quote/MUD.US.md) - [MUU.US](https://longbridge.com/en/quote/MUU.US.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [SNDG.US](https://longbridge.com/en/quote/SNDG.US.md) - [SNDQ.US](https://longbridge.com/en/quote/SNDQ.US.md) - [SNDU.US](https://longbridge.com/en/quote/SNDU.US.md) - [SNXX.US](https://longbridge.com/en/quote/SNXX.US.md) - [MUYY.US](https://longbridge.com/en/quote/MUYY.US.md) - [MUZ.US](https://longbridge.com/en/quote/MUZ.US.md) - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [WDC.US](https://longbridge.com/en/quote/WDC.US.md) - [STX.US](https://longbridge.com/en/quote/STX.US.md) - [DRAM.US](https://longbridge.com/en/quote/DRAM.US.md) - [WDCVV.US](https://longbridge.com/en/quote/WDCVV.US.md) ## Related News & Research - [Why Is SK Hynix’s Stock Price Falling Instead of Rising as It Prepares for a US Listing?](https://longbridge.com/en/news/291910719.md) - [AI Memory Giant SK Hynix Reverses Losses, Spiking 5% Intraday](https://longbridge.com/en/news/292001890.md) - [SK Hynix removing price caps on long-term supply agreements: report](https://longbridge.com/en/news/291544066.md) - [SK Hynix to List on Nasdaq on July 10, Poised to Set Record for Overseas Company Listing in US](https://longbridge.com/en/news/291911044.md) - [SK Hynix Just Sent a Huge Warning to Micron Investors](https://longbridge.com/en/news/291131309.md)