Editor's Note: The private shares of my #1 Pre-IPO cost less than $5 today. It's a quantum security company that’s getting ready to go public on the Nasdaq. |
U.S. investors can get in right now. Get the details here. |
SK Hynix just pulled the plug on a giant U.S. IPO. |
The Korean chipmaker said Friday it dropped plans to list its flash memory business Solidigm in the United States. |
It blamed "market conditions and share price trends." |
Solidigm had hoped to raise $10 billion to $15 billion at a valuation of up to $150 billion, based on industry estimates cited by The Wall Street Journal. |
South Korean regulators had also raised concerns about protecting SK Hynix shareholders. |
The timing says a lot. |
SK Hynix (NASDAQ: SKHY) had its own record U.S. listing in July. It raised $26.5 billion at $149 per share, the largest U.S. listing ever by a foreign company. |
On Friday morning, the stock traded near $137. That's about 8% below its IPO price and roughly a third below its September record. |
Want to invest before a company lists? Here's my #1 Pre-IPO. |
Memory stocks have been crushed this month. They've lost about $1.3 trillion in market value from their 2026 highs, even as profits hit records. On Thursday alone, the Nasdaq fell 3% and chip stocks dropped 7%. |
Solidigm isn't the only AI deal on hold. |
· Firmus, an Nvidia-backed data center company in Australia, scrapped an IPO that would have valued it near $30 billion |
· AirTrunk pushed its Singapore listing into next year |
· Korean AI cloud company Elice fell 32% on its first day, even though demand for its shares was about 400 times the supply |
RBC Capital Markets says the dollar value of global IPO filings fell 33% in September from a year ago. |
I don't think the AI IPO boom is over. SK Hynix said the decision doesn't change Solidigm's growth plans. Demand for memory chips is still running ahead of supply, and executives expect shortages to last into 2028. Investors are simply getting pickier about price. |
The biggest test is still ahead. |
Anthropic could kick off its IPO roadshow the week of November 9. A strong debut would go a long way toward reopening the window. |
This is also a reminder of the risk in buying on IPO day. Investors who paid $149 for SK Hynix in July are still waiting to break even. |
I'd rather invest before the listing. My favorite Pre-IPO right now is a quantum company with private shares priced under $5. |
Here's how to join me before the deal closes. |
Ian Wyatt |
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