SK Hynix shares rose in pre-market trading on Thursday.
Alphabet increased its 2026 capital spending forecast to a range of $195 billion to $205 billion. The company will allocate a substantial portion of this expenditure to enhance AI server capacity. This investment is expected to boost demand for high-bandwidth memory (HBM) chips, a primary product for SK Hynix.
Supply-side dynamics also supported the stock's upward movement. SK Hynix reached its 2.5% limit for converting Korean-listed shares into U.S.-traded American Depositary Receipts (ADRs). This supply cap on U.S.-listed stock combined with high investor demand to create positive price pressure.
The company reports second-quarter earnings on July 29.