TLDR
- SK Hynix stock surged as much as 12% intraday after Alphabet raised its 2026 capex guidance to $195B–$205B
- Alphabet’s Cloud segment grew 82% year-over-year, reinforcing AI memory demand
- Korea Securities Depository confirmed SKHY ADR conversions have hit the 2.5% cap, restricting supply to US investors
- SK Hynix’s board approved a ₩7.09 trillion investment in its Cheongju packaging facility on July 22
- The KOSPI rose 4.8% to a fresh year-to-date high, partly driven by SK Hynix’s rally
SK Hynix stock jumped as much as 12% intraday on Thursday, pushing the KOSPI index up 4.8% to a fresh year-to-date high, as Alphabet’s blowout second-quarter earnings sent a clear signal to the AI memory supply chain.
Alphabet reported Q2 revenue of $119.8 billion, beating expectations. Its Cloud segment posted 82% year-over-year growth. The company then raised its full-year 2026 capital expenditure guidance to $195 billion–$205 billion, up from the prior $180 billion–$190 billion range.
Alphabet CFO Anat Ashkenazi said the increase was driven by “an acceleration in the delivery of capacity to meet growing demand.” That statement landed directly on SK Hynix, one of the world’s top suppliers of high-bandwidth memory chips used in AI servers and data centers.
SK Hynix’s US-listed ADR, SKHY, was up around 5.89% in recent trading, while its Korean-listed stock, trading under 000660, rose 4.86%.
The move higher was not just about Alphabet’s numbers.
ADR Supply Now Constrained
The Korea Securities Depository confirmed that SK Hynix has hit the 2.5% cap on the total number of Korean-listed shares that can be converted into US-traded ADRs. That conversion channel is now effectively closed.
The $26.5 billion ADR issuance from July 10 — one of the largest US share offerings on record — exhausted that limit. With the supply of SKHY shares available to US investors now capped, upward price pressure has been amplified.
Normally, a raise of that size puts pressure on a stock. Here, investors kept buying, a sign of confidence in the company’s AI growth story.
Major Facility Investment Approved
On July 22, SK Hynix’s board approved a ₩7.09 trillion investment in its Cheongju advanced packaging facility. The move reinforces the company’s capacity expansion plans ahead of its Q2 earnings call, scheduled for July 29.
The timing adds another layer to today’s rally. Investors are positioning ahead of results, and the facility approval gives them a concrete data point on where the company is putting its money.
SK Hynix’s CEO has previously said the memory shortage is expected to worsen in 2027, with demand outstripping supply beyond 2030.
The broader US market was not sharing in the enthusiasm. The S&P 500 was down 0.4%, the Dow Jones off 0.4%, and the Nasdaq sliding 0.5% at the time of SK Hynix’s move. The divergence makes clear this is a company-specific and sector-specific story.
Alphabet’s capex acceleration, the constrained ADR supply, the Cheongju facility approval, and upcoming earnings have all stacked up at the same time.
SK Hynix reports Q2 results on July 29.
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