South Korean memory chip manufacturer SK Hynix, which competes with Samsung and US-based Micron, announced on Monday that it plans to sell nearly 17.8 million shares in a US initial public offering. According to Bloomberg, if the shares perform well—and there are signs they will—the company could raise approximately $28 billion, based on SK Hynix's closing share price last Friday in Seoul.

SK Hynix will issue American depositary receipts (ADRs), a type of certificate that allows US investors to purchase a foreign stock without trading directly on an overseas exchange. Each ADR will represent one-tenth of a common share. The securities are expected to be priced on Thursday and begin trading on Friday.

Like Micron, SK Hynix is benefiting from a boom driven by artificial intelligence, which has boosted both sales and stock prices. The company reported that its first-quarter revenues surged nearly 200% compared to the same period last year, while its stock has climbed about 260% so far this year. This growth stems from the fact that AI systems are highly memory-intensive.

As hyperscalers such as Amazon, Microsoft, Google, and Oracle race to build so-called AI factories, and as new AI data centers multiply across the country, demand has outstripped supply, leading to a shortage of memory chips. This includes High Bandwidth Memory (HBM), DRAM, and NAND—the various types of chips that store and move data within AI systems. The situation has been dubbed "RAMageddon." Apple executives have stated that the shortage is forcing the company to raise prices on Mac computers and iPads.

South Korean tech companies, led by SK Hynix and Samsung, have pledged to invest over $550 billion in building new manufacturing capacity to keep pace. However, this is a risky venture. By the time these facilities are completed, AI memory requirements may have shifted, potentially leaving them with excess supply and causing prices to crash.

For now, though, Wall Street is searching for the next Nvidia, and memory chip makers are among the closest options available. Micron, the nearest US comparison, has seen its stock soar nearly 700% over the past year, reaching a valuation of over $1 trillion, fueled by record AI-driven memory demand and revenue.