UBS is telling investors to make a swap: pick up SK Hynix’s upcoming American Depositary Receipts on Nasdaq and offload the Korean-listed shares. It’s a straightforward rotation trade built around one of the largest ADR launches in history.
The world’s second-largest memory chipmaker is set to begin trading ADRs on July 10, 2026, in an offering that could raise up to $29 billion through the issuance of 17.79 million shares. Each ADR will represent one-tenth of a common share, giving US-based investors a direct on-ramp to a company that has become indispensable to NVIDIA’s AI infrastructure.
Why UBS is bullish on the ADR trade
UBS has maintained a Buy rating on SK Hynix and recently bumped its price target to ₩3.2 million, roughly $2,091 per share. That upgrade came after SK Hynix stock dropped about 8%, which UBS apparently viewed less as a warning sign and more as a buying opportunity.
UBS estimates the ADR listing could pull in approximately $3.5 billion in passive inflows just from index inclusion alone. That’s money flowing in on autopilot, from funds that mechanically buy anything added to their benchmark.
