Global storage giants compete to go public, the siphon effect of huge IPOs leads to gaming
21st Century Business Herald reporter Wu Jianan Entering July, the global memory chip industry is ushering in a historic moment. On July 10, SK Hynix (stock code: SKHY) was listed on Nasdaq in the United States. The opening price on the first day of listing was US$170, an increase of approximately 14.1% from the issue price of US$149. It once touched US$177 during the session, and the increase expanded to approximately 18.8%. It closed at US$168.01, an intraday increase of approximately 12.8%, corresponding to a market value of approximately US$1.22 trillion.
21st Century Business Herald reporter Wu Jianan Entering July, the global memory chip industry is ushering in a historic moment. On July 10, SK Hynix (stock code: SKHY) was listed on Nasdaq in the United States. The opening price on the first day of listing was US$170, an increase of approximately 14.1% from the issue price of US$149. It once touched US$177 during the session, and the increase expanded to approximately 18.8%. It closed at US$168.01, an intraday increase of approximately 12.8%, corresponding to a market value of approximately US$1.22 trillion. The company raised $26.5 billion by issuing 177.9 million American depositary receipts (ADRs) at $149 each. This figure not only broke the record for the size of a foreign company's IPO in the United States, but also surpassed Alibaba's 25 billion US dollars in financing in 2014, becoming the third largest listing case in the history of global securities. Almost at the same time, the A-share market on the other side of the ocean also received heavy news. Domestic DRAM leader Changxin Technology officially disclosed its prospectus for the Science and Technology Innovation Board on July 9 and is scheduled to open new share subscriptions on July 16. The company plans to raise 29.5 billion yuan, making it the largest A-share IPO in 2026 and ranking second in the history of the Science and Technology Innovation Board, second only to SMIC. On one hand, the Korean storage giant is using ADR to rush to Nasdaq, and on the other hand, the Chinese DRAM leader is knocking on the door of the Science and Technology Innovation Board. Two IPOs, across the Pacific, were staged almost simultaneously, pointing to an industry reality that is accelerating: the memory chip super cycle driven by AI is reshaping the global semiconductor industry pattern with unprecedented intensity. The two giants' successive listings will have a profound impact on the capital structure, valuation system and industry chain ecology of global memory chips. However, giant IPOs bring not only capital feasts, but also market games. Since July, A-share storage concept stocks have experienced a "roller coaster" market. The sector plummeted on July 7, surged across the board on July 9, and fell sharply again on July 10. Behind the intertwining of surges and corrections are the market's deep differences on the capital siphoning effect, valuation ceiling and the peak of the price increase cycle. Storage giants are intensively listed On July 6, SK hynix officially launched the promotion process for listing in the United States. Although South Korea's semiconductor sector experienced a correction before the launch, the enthusiasm of institutional investors has not diminished at all. According to disclosures, this issuance was ultimately oversubscribed by more than 7 times, with total subscription intention approaching US$200 billion. The world's top asset management institutions such as Baillie Gifford and Coatue Management have entered the market one after another, and the top ten orders have absorbed nearly half of the share. In the end, SK Hynix issued 177.9 million ADRs at a price of US$149 each, raising US$26.5 billion. This issue price represents a premium of approximately 3.1% to its local closing price in South Korea, showing the company's confidence in its own value. The underwriting lineup for this issuance is top-notch, with four major investment banks including Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase jointly taking the lead, and nine other financial institutions forming an underwriting syndicate. All funds raised will be invested in the expansion of advanced production capacity of memory chips, including the construction of the first phase of the Yongin Semiconductor Cluster in South Korea, the expansion of the seventh-generation advanced packaging production line in Cheongju, and the bulk purchase of high-end equipment such as ASML EUV lithography machines. SK Hynix’s strategic intention to go public in the United States goes far beyond financing. For a long time, Korean listed companies have suffered from the so-called "Korean discount". SK Hynix trades at only 6.2 times its expected earnings for the next 12 months, which is lower than Micron Technology's 7 times. After landing on Nasdaq, the company is expected to be included in the Nasdaq 100 Index, triggering systematic buying by passive funds and pushing the valuation closer to that of its American peers. Choi Tae-won, chairman of SK Group, previously publicly stated that listing ADR in the United States can open up channels for global diversified shareholders, further strengthen the company's global operation background, and reduce the risk of valuation disturbances caused by fluctuations in a single regional capital market. From a fundamental perspective, SK Hynix's financial performance is not bad. In the first quarter of 2026, the company's revenue reached 52.6 trillion won, operating profit was 37.6 trillion won, and the operating profit margin surged to 72%. This profit level is higher than TSMC's operating profit margin of 58.1% in the same period. UBS believes that the recent correction is a short-lived phenomenon, and catalysts such as the implementation of the subsequent long-term supply agreement and the formal mass production and shipment of HBM4 will jointly promote the re-pricing of the company's valuation.
In terms of profit outlook, UBS predicts that SK Hynix's operating profit will reach 32.7 trillion won in 2026, about 27% higher than the consensus estimate; it will reach 62.3 trillion won in 2027, about 54% higher than the consensus estimate. The agency raised its 12-month target price for SK Hynix from 3 million won to 3.2 million won and reiterated its "buy" rating. Just one day before SK Hynix landed on Nasdaq, on July 9, Changxin Technology, the domestic DRAM leader, officially disclosed its prospectus for listing on the Science and Technology Innovation Board. According to the issuance arrangement, Changxin Technology will start a preliminary inquiry on July 13, publish an issuance announcement on July 15, and officially open online and offline subscriptions on July 16. This time, it plans to publicly issue 6.688 billion shares, accounting for about 10% of the total equity after the issuance, and plans to raise 29.5 billion yuan. In terms of performance, Changxin Technology’s explosive power is equally astonishing. In the first quarter of 2026, the company achieved revenue of 50.8 billion yuan, a year-on-year increase of 719%; net profit attributable to the parent company was 24.762 billion yuan, turning a loss into a profit. The company expects revenue in the first half of 2026 to reach 110 billion to 120 billion yuan, and net profit attributable to the parent company to be 50 billion to 57 billion yuan. According to Omdia data, Changxin Technology has become the largest DRAM manufacturer in China and the fourth largest in the world in terms of production capacity and shipment volume. On the technical roadmap, the company adopted a "generation-hopping R&D" strategy and completed the mass production leap from the first-generation to the fourth-generation process technology platform in 10 years. Its products cover the full range of DDR4 to DDR5, LPDDR4X to LPDDR5/5X. Changxin Technology currently has no controlling shareholder or actual controller. Before this issuance, the shareholders who directly held more than 5% of the company's shares were Qinghui Electric, Changxin Integrated, Da Fund Phase II, Hefei Jixin and Anhui Provincial Investment, which held 21.67%, 11.71%, 8.73%, 8.37% and 7.91% of the equity of Changxin Technology respectively. There are also industrial leaders such as Alibaba, Tencent, Xiaomi, and GigaDevice on the shareholder list. Alibaba Cloud Computing holds a shareholding ratio of 3.85%; Tencent holds 1.5% of Changxin Technology through its affiliated company Beijing Fengyi; Midea Investment and Hubei Xiaomi hold a shareholding ratio of 0.75% and 0.21% respectively. Guolian Minsheng Securities believes that the IPO of Changxin Technology may promote a new cycle of domestic semiconductor Capex (capital expenditure). Changxin Technology has launched a large-scale expansion of production through the IPO of the Science and Technology Innovation Board, and has promoted the layout of multiple bases in the medium and long term. Market institutions predict that the company's global market share will reach 17% in 2028. It benchmarks the production capacity of large overseas manufacturers, and there is huge room for subsequent expansion of production. In addition to Changxin Technology, Yangtze Memory has launched listing guidance, and domestic storage manufacturers will join the capital market. The “roller coaster” of storage concept stocks 2026 will undoubtedly be a great year for memory chip companies to go public. In addition to the two giants Changxin Technology and SK Hynix, many storage industry chain companies are also making frequent moves in the capital market. The storage sector has become the most active segment in this round of semiconductor IPO boom. Dapuwei (301666.SZ) landed on the GEM on April 16, 2026. Yingren Technology’s IPO application for the Science and Technology Innovation Board was accepted on June 29. Deyiwei completed the IPO guidance and filing on April 2 this year, sprinting for the IPO for the second time. In addition, GigaDevice (603986.SH, 3986.HK), the domestic leader in memory chip design, officially listed on the Hong Kong stock market, and Montage Technology (688008.SH, 6809.HK), the world's largest memory interconnect chip manufacturer, also launched a global offering of Hong Kong stocks. However, entering July, the performance of storage concept stocks in the secondary market can be called a "roller coaster". On July 9, boosted by the news that Changxin Technology launched its IPO, the A-share semiconductor industry chain exploded across the board. The S&W Semiconductor Index rose 8.58%, ranking first among all secondary industries. In terms of individual stocks, GigaDevice soared nearly 22%, Montage Technology rose more than 19%, and SMIC (688981.SH) rose more than 10%. GigaDevice’s total market value exceeded 440 billion yuan that day. In terms of Hong Kong stocks, the storage sector also rebounded.
But just two days ago, on July 7, storage concept stocks had just experienced a violent correction. GigaDevice fell more than 12%, and Montage Technology fell more than 10%. On July 10, the A-share semiconductor sector fell sharply again. GigaDevice fell more than 21%, Montage Technology fell more than 8%, Huahong Grace (688347.SH) fell more than 8%, and SMIC fell more than 4%. (Changes in the Semiconductor Index (882121.WI) from the end of June to the present) The intertwined trend of surges and corrections reflects the market's deep differences in the storage sector. Has the long-term logic of AI-driven technology been fully priced? Is the price increase cycle nearing its peak? In particular, the market is also worried that after the listing of giant IPOs, funds will be withdrawn from similar companies and poured into new stocks, that is, the siphon effect within the sector, which will bring valuation adjustment pressure to existing concept stock targets. In the face of market differences, major institutions have given their own judgments. Nomura Securities believes that market concerns are seriously exaggerated. The agency pointed out in a report on July 6 that the current core contradiction of the global storage industry is still a severe shortage of supply, and the structural demand growth driven by AI has not yet peaked. Investors' recent concerns about oversupply are understandable, but they are clearly excessive. The market's overreaction may provide a window for the storage sector to re-examine valuations. UBS believes that cloud computing companies will continue to invest in artificial intelligence infrastructure, thereby helping to support demand for memory chips, and that structural undersupply will continue until at least mid-2028. UBS has raised its DDR contract price forecast, predicting a 32% quarter-on-quarter rise in the third quarter of 2026 and a further 18% rise in the fourth quarter. NAND flash memory prices are expected to follow a similar trend, with an expected increase of 30% in the third quarter and 12% in the fourth quarter. Tianfeng Securities pointed out in a research report on July 8 that the current round of storage boom improvement is not driven by a single terminal replenishment, but is the result of changes in demand structure, supply expansion becoming more rational, and the repair of the industrial chain inventory cycle. The agency believes that storage prices and industry chain profitability are expected to maintain good resilience against the backdrop of upgrading demand structure and continued supply constraints. However, Morgan Stanley gave a more cautious judgment. The bank's Asia-Pacific technology team said in a research report on July 6 that the rate of change in memory chip prices is peaking, and it is necessary to be wary of a correction in the short term. Michael Wilson, chief U.S. stock strategist at Morgan Stanley, even made clear recommendations to clients to reduce their holdings of semiconductors, believing that memory chips will bear the brunt. However, Morgan Stanley also emphasized that this does not mean the end of the cycle and is still bullish in the long term. It is expected that industry profits will increase by 35% to 40% in 2027. Donghai Securities recommended that investors pay attention to the risk of correction after the interim report is fulfilled, believing that the effect of storage price increases will be accelerated, and prices may fluctuate at high levels in the later period. However, the agency also recommends paying attention to investment opportunities in industry chain links such as AI computing power and storage during dips. Regarding the market reaction before and after the IPO of giants, the China Merchants Securities strategy team conducted statistics on 25 companies that have raised more than 20 billion yuan in IPO in the history of A-shares. They found that the market before large-scale IPOs usually has a phased warm-up market: the average return of Wind in the first month of the IPO is about +2.4%, and the probability of increase is 56%. The average return of CSI 500 in the first month is up to +3.1%, and the probability of increase is 68%. However, sentiment cooled down rapidly after the listing. The average returns and rising probability of major indexes fell back in the week after the IPO. The capital siphoning effect of large-scale IPOs has periodically suppressed short-term market sentiment. GF Securities clearly judged that in the long run, domestic and foreign stock markets are determined by industrial trends, not single IPO events, that determine the evolution of industry styles. Zhongtai Securities believes that intensive IPOs in hot industries may bring about a new round of market interpretation. The core is not that the IPO itself increases supply, but that the IPO process will concentrate on releasing industry information, increasing market attention and strengthening capital risk appetite. Some analysts believe that the market value and growth story of giant IPOs will provide important valuation anchors for the entire sector. The storage industry is currently in a price increase cycle driven by AI demand. The listing of leading companies coincides with the high prosperity of the industry, which greatly attracts the attention of the capital market and may promote the "Davis Double Click" for A-share-related listed companies. (
In terms of profit outlook, UBS predicts that SK Hynix's operating profit will reach 32.7 trillion won in 2026, about 27% higher than the consensus estimate; it will reach 62.3 trillion won in 2027, about 54% higher than the consensus estimate. The agency raised its 12-month target price for SK Hynix from 3 million won to 3.2 million won and reiterated its "buy" rating. Just one day before SK Hynix landed on Nasdaq, on July 9, Changxin Technology, the domestic DRAM leader, officially disclosed its prospectus for listing on the Science and Technology Innovation Board. According to the issuance arrangement, Changxin Technology will start a preliminary inquiry on July 13, publish an issuance announcement on July 15, and officially open online and offline subscriptions on July 16. This time, it plans to publicly issue 6.688 billion shares, accounting for about 10% of the total equity after the issuance, and plans to raise 29.5 billion yuan. In terms of performance, Changxin Technology’s explosive power is equally astonishing. In the first quarter of 2026, the company achieved revenue of 50.8 billion yuan, a year-on-year increase of 719%; net profit attributable to the parent company was 24.762 billion yuan, turning a loss into a profit. The company expects revenue in the first half of 2026 to reach 110 billion to 120 billion yuan, and net profit attributable to the parent company to be 50 billion to 57 billion yuan. According to Omdia data, Changxin Technology has become the largest DRAM manufacturer in China and the fourth largest in the world in terms of production capacity and shipment volume. On the technical roadmap, the company adopted a "generation-hopping R&D" strategy and completed the mass production leap from the first-generation to the fourth-generation process technology platform in 10 years. Its products cover the full range of DDR4 to DDR5, LPDDR4X to LPDDR5/5X. Changxin Technology currently has no controlling shareholder or actual controller. Before this issuance, the shareholders who directly held more than 5% of the company's shares were Qinghui Electric, Changxin Integrated, Da Fund Phase II, Hefei Jixin and Anhui Provincial Investment, which held 21.67%, 11.71%, 8.73%, 8.37% and 7.91% of the equity of Changxin Technology respectively. There are also industrial leaders such as Alibaba, Tencent, Xiaomi, and GigaDevice on the shareholder list. Alibaba Cloud Computing holds a shareholding ratio of 3.85%; Tencent holds 1.5% of Changxin Technology through its affiliated company Beijing Fengyi; Midea Investment and Hubei Xiaomi hold a shareholding ratio of 0.75% and 0.21% respectively. Guolian Minsheng Securities believes that the IPO of Changxin Technology may promote a new cycle of domestic semiconductor Capex (capital expenditure). Changxin Technology has launched a large-scale expansion of production through the IPO of the Science and Technology Innovation Board, and has promoted the layout of multiple bases in the medium and long term. Market institutions predict that the company's global market share will reach 17% in 2028. It benchmarks the production capacity of large overseas manufacturers, and there is huge room for subsequent expansion of production. In addition to Changxin Technology, Yangtze Memory has launched listing guidance, and domestic storage manufacturers will join the capital market. The “roller coaster” of storage concept stocks 2026 will undoubtedly be a great year for memory chip companies to go public. In addition to the two giants Changxin Technology and SK Hynix, many storage industry chain companies are also making frequent moves in the capital market. The storage sector has become the most active segment in this round of semiconductor IPO boom. Dapuwei (301666.SZ) landed on the GEM on April 16, 2026. Yingren Technology’s IPO application for the Science and Technology Innovation Board was accepted on June 29. Deyiwei completed the IPO guidance and filing on April 2 this year, sprinting for the IPO for the second time. In addition, GigaDevice (603986.SH, 3986.HK), the domestic leader in memory chip design, officially listed on the Hong Kong stock market, and Montage Technology (688008.SH, 6809.HK), the world's largest memory interconnect chip manufacturer, also launched a global offering of Hong Kong stocks. However, entering July, the performance of storage concept stocks in the secondary market can be called a "roller coaster". On July 9, boosted by the news that Changxin Technology launched its IPO, the A-share semiconductor industry chain exploded across the board. The S&W Semiconductor Index rose 8.58%, ranking first among all secondary industries. In terms of individual stocks, GigaDevice soared nearly 22%, Montage Technology rose more than 19%, and SMIC (688981.SH) rose more than 10%. GigaDevice’s total market value exceeded 440 billion yuan that day. In terms of Hong Kong stocks, the storage sector also rebounded.
But just two days ago, on July 7, storage concept stocks had just experienced a violent correction. GigaDevice fell more than 12%, and Montage Technology fell more than 10%. On July 10, the A-share semiconductor sector fell sharply again. GigaDevice fell more than 21%, Montage Technology fell more than 8%, Huahong Grace (688347.SH) fell more than 8%, and SMIC fell more than 4%. (Changes in the Semiconductor Index (882121.WI) from the end of June to the present) The intertwined trend of surges and corrections reflects the market's deep differences in the storage sector. Has the long-term logic of AI-driven technology been fully priced? Is the price increase cycle nearing its peak? In particular, the market is also worried that after the listing of giant IPOs, funds will be withdrawn from similar companies and poured into new stocks, that is, the siphon effect within the sector, which will bring valuation adjustment pressure to existing concept stock targets. In the face of market differences, major institutions have given their own judgments. Nomura Securities believes that market concerns are seriously exaggerated. The agency pointed out in a report on July 6 that the current core contradiction of the global storage industry is still a severe shortage of supply, and the structural demand growth driven by AI has not yet peaked. Investors' recent concerns about oversupply are understandable, but they are clearly excessive. The market's overreaction may provide a window for the storage sector to re-examine valuations. UBS believes that cloud computing companies will continue to invest in artificial intelligence infrastructure, thereby helping to support demand for memory chips, and that structural undersupply will continue until at least mid-2028. UBS has raised its DDR contract price forecast, predicting a 32% quarter-on-quarter rise in the third quarter of 2026 and a further 18% rise in the fourth quarter. NAND flash memory prices are expected to follow a similar trend, with an expected increase of 30% in the third quarter and 12% in the fourth quarter. Tianfeng Securities pointed out in a research report on July 8 that the current round of storage boom improvement is not driven by a single terminal replenishment, but is the result of changes in demand structure, supply expansion becoming more rational, and the repair of the industrial chain inventory cycle. The agency believes that storage prices and industry chain profitability are expected to maintain good resilience against the backdrop of upgrading demand structure and continued supply constraints. However, Morgan Stanley gave a more cautious judgment. The bank's Asia-Pacific technology team said in a research report on July 6 that the rate of change in memory chip prices is peaking, and it is necessary to be wary of a correction in the short term. Michael Wilson, chief U.S. stock strategist at Morgan Stanley, even made clear recommendations to clients to reduce their holdings of semiconductors, believing that memory chips will bear the brunt. However, Morgan Stanley also emphasized that this does not mean the end of the cycle and is still bullish in the long term. It is expected that industry profits will increase by 35% to 40% in 2027. Donghai Securities recommended that investors pay attention to the risk of correction after the interim report is fulfilled, believing that the effect of storage price increases will be accelerated, and prices may fluctuate at high levels in the later period. However, the agency also recommends paying attention to investment opportunities in industry chain links such as AI computing power and storage during dips. Regarding the market reaction before and after the IPO of giants, the China Merchants Securities strategy team conducted statistics on 25 companies that have raised more than 20 billion yuan in IPO in the history of A-shares. They found that the market before large-scale IPOs usually has a phased warm-up market: the average return of Wind in the first month of the IPO is about +2.4%, and the probability of increase is 56%. The average return of CSI 500 in the first month is up to +3.1%, and the probability of increase is 68%. However, sentiment cooled down rapidly after the listing. The average returns and rising probability of major indexes fell back in the week after the IPO. The capital siphoning effect of large-scale IPOs has periodically suppressed short-term market sentiment. GF Securities clearly judged that in the long run, domestic and foreign stock markets are determined by industrial trends, not single IPO events, that determine the evolution of industry styles. Zhongtai Securities believes that intensive IPOs in hot industries may bring about a new round of market interpretation. The core is not that the IPO itself increases supply, but that the IPO process will concentrate on releasing industry information, increasing market attention and strengthening capital risk appetite. Some analysts believe that the market value and growth story of giant IPOs will provide important valuation anchors for the entire sector. The storage industry is currently in a price increase cycle driven by AI demand. The listing of leading companies coincides with the high prosperity of the industry, which greatly attracts the attention of the capital market and may promote the "Davis Double Click" for A-share-related listed companies. (