Options-driven demand for SK Hynix’s new Nasdaq ADR pushed the US-listed shares about 27.3% higher to $193.92 and created a roughly 51% premium over Seoul-listed stock after Seoul jumped nearly 13% on July 15; Barclays initiated coverage with an overweight rating and a $330 price target. Limited convertibility between listings prevents quick arbitrage, while analysts say DRAM suppliers are meeting only 75–80% of demand and shortages may deepen through 2027, a market-impact risk that could drive institutional adoption of US listings and cause sharp price swings.

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In Brief

Options trading on SK Hynix's new Nasdaq ADR is fueling the wide price gap.
The ADR closed up 27% Tuesday at $193.92 on heavy options demand.
Barclays initiated coverage with an overweight rating and a $330 price target.

US investors are paying 51% more than Seoul investors for SK Hynix stock, even after Seoul shares jumped nearly 13% Wednesday, July 15. The premium held as the Korean stock settled at around 10% up on yesterday’s close

The gap reflects strong demand for the chipmaker’s US-listed shares. Options trading and optimism over tightening AI memory supply are driving it.

Why US Investors Are Paying More

Options trading opened once the ADRs listed and derivative traders’ bets pushed the price well past the Seoul-listed common stock, according to Bloomberg. The shares closed Tuesday at $193.92, up 27.29%, then slipped 2.2% in after-hours trading.

The NASDAQ twin of the SK Hynix shares have seen steady upward growth since listing. Image Source: Investing.com

Limits on converting common shares into the new US instrument restrict arbitrage between the two listings. That structural gap keeps the premium from closing quickly.

Barclays initiated coverage with an overweight rating and a $330 price target. Kim Sunwoo, senior analyst at Meritz Securities, said DRAM suppliers are meeting only 75% to 80% of demand. He expects the shortfall to deepen through 2027.

With supply shortages set to deepen, memory prices and earnings are likely to continue improving, supporting a strong rebound in the share price.

Kim Sunwoo, Reuters

SK Hynix CEO Kwak Noh-jung has forecast the global memory industry’s worst-ever supply shortage in 2027. He expects demand to outstrip the company’s production capacity well beyond 2030.

Seoul Catches Up

The Nasdaq surge followed a volatile week for the Seoul-listed stock. The shares shed 10% Monday during a broader Asian selloff tied to Middle East tensions. Wednesday’s rebound extended Tuesday’s gains and tracked a wider rally across Korean semiconductor stocks, with Samsung Electronics up nearly 8%.

SK Hynix is up 10% in early morning trading. Image Source: Trading View

The dual listing has drawn attention beyond SK Hynix. Nasdaq President Nelson Griggs said the offering’s success is prompting other international firms to weigh similar US listings.

A 51% gap between two share classes of the same company rarely holds. Traders will likely move to close it in the coming sessions, which could bring sharp swings in either direction.

Read the article at BeInCrypto