US investors are paying 51% more for SK Hynix stock than buyers in Seoul, even after the Korean shares jumped nearly 13% on July 15. The American depositary receipts closed Tuesday at $193.92, up 27.29% from their listing price, then slipped 2.2% in after-hours trading. The gap reflects a surge in options trading and optimism that tightening AI memory supply will keep profits high.
Why the premium persists
Options trading opened as soon as the ADRs listed, and derivative bets pushed the US price well past the Seoul-listed common stock. But limits on converting common shares into the new US instrument restrict arbitrage, so the premium can't close quickly. A 51% gap between two share classes of the same company rarely holds, and traders will likely move to close it — which could bring sharp swings.
Analysts see supply shortfall deepening
Barclays initiated coverage with an overweight rating and a $330 price target, betting the memory maker will ride the AI boom. Meritz Securities analyst Kim Sunwoo said DRAM suppliers are meeting only 75% to 80% of demand, and expects the shortfall to deepen through 2027. That kind of supply constraint is exactly what's driving the premium on US shares, where investors are betting on long-term AI chip demand.
CEO warns of worst-ever shortage
SK Hynix CEO Kwak Noh-jung forecast the global memory industry's worst-ever supply shortage in 2027, with demand outstripping production capacity well beyond 2030. The warning came as the Seoul-listed stock shed 10% on Monday during a broader Asian selloff tied to Middle East tensions. It rebounded Wednesday, tracking a wider rally in Korean semiconductor stocks.
Nasdaq sees more dual listings ahead
Nasdaq President Nelson Griggs said the success of SK Hynix's dual listing is prompting other international firms to consider similar US listings. The premium shows how much US investors are willing to pay for direct exposure to AI memory plays — and how hard it is to close the gap when conversion is limited. The question now is when, not if, traders find a way to narrow that 51% spread.
