SK Hynix's $28 billion US share sale oversubscribed more than seven times 

SK Hynix’s $28 billion United States share sale has been more than seven times oversubscribed, according to a person familiar with the matter, reflecting strong investor demand for the South Korean chipmaker’s role in the artificial intelligence supply chain.

The offering will be used to finance new factories and equipment as demand for artificial intelligence chips continues to rise. It is expected to be the world’s second-largest share sale after SpaceX’s $85.7 billion initial public offering last month.

SK Hynix declined to comment. The person who shared the details was not identified as the information is confidential.

Shares of SK Hynix rose 6% in morning trade following the report.

Underwriters are expected to issue pricing guidance after the South Korean stock market closes on Thursday, with allocations to be finalised later in the day in United States time, another source had earlier said.

Although semiconductor stocks globally have lost momentum in recent weeks, companies such as SK Hynix and Samsung Electronics have posted strong gains due to rising demand for chips used in artificial intelligence data centres.

SK Hynix shares have fallen by about a quarter over the past two weeks, but remain up 680% over the last 12 months.

The company has become a leading supplier of high-bandwidth memory chips to Nvidia, placing it at the centre of the global artificial intelligence chip boom.