Shares of Chinese memory chip companies rose sharply on Monday, driven in part by investor anticipation surrounding the upcoming U.S. stock market debut of South Korean memory chip maker SK Hynix. Shenzhen Longsys Electronics Co Ltd led the rally, surging as much as 13 percent in early trading before closing at 681.8 yuan ($100) on the Shenzhen Stock Exchange. Other industry players, including CECport and JCET, also recorded notable gains, with CECport hitting its daily price limit.

SK Hynix is scheduled to list on the Nasdaq stock exchange this Friday through American Depositary Receipts under the ticker symbol “SKHY.” The company aims to raise approximately $29 billion, a figure that would make the offering one of the largest initial public offerings by a foreign firm in the U.S. The IPO is seen as a move to narrow the valuation gap between SK Hynix and its U.S. competitor Micron Technology.

This event coincides with a period of rapid growth in the global memory chip market. According to Gartner, worldwide chip sales are projected to reach nearly 9 trillion yuan in 2026, representing a year-on-year increase of 64 percent. Memory chips alone are expected to contribute about 4.3 trillion yuan to that total. A recent pricing survey from TrendForce indicated that the dynamic random-access memory (DRAM) market will experience exceptionally tight supply conditions in the third quarter, with contract prices forecasted to rise between 13 and 18 percent compared to the previous quarter. Prices for NAND Flash memory are also expected to increase by 10 to 15 percent in the same period.

DRAM and NAND Flash are essential components widely used in consumer electronics such as smartphones, personal computers, and tablets. While demand from artificial intelligence (AI) applications and data center deployments remains a significant growth driver, increases in consumer device prices have shown signs of moderating as affordability constraints come into play. TrendForce emphasized that AI continues to be the primary force fueling demand. Additionally, the industry is reallocating memory supplies toward higher-margin server products, which limits availability for consumer devices and supports elevated prices despite softer demand in those segments.

The combination of a global supply shortage and expanding AI-driven needs for high-bandwidth memory has contributed to what industry experts describe as a memory supercycle. At the same time, China’s domestic memory chip industry is gaining momentum, although analysts note a persistent gap in technology and production scale compared to global leaders.

China’s largest DRAM manufacturer, CXMT Corp, is expected to pursue an initial public offering later this year. Meanwhile, Yangtze Memory Technologies, the country’s only company capable of full-cycle 3D NAND flash chip manufacturing, has received regulatory approval for its planned listing. Market observers, including Shen Meng, director of the boutique investment bank Chanson & Co, are closely watching the performance of SK Hynix’s Nasdaq debut as an indicator for the potential success of these Chinese IPOs.

Roger Sheng, vice-president of research at Gartner, acknowledged substantial progress by Chinese memory chip firms but highlighted the significant differences that remain in advanced technologies and production capacity relative to international competitors. This suggests considerable room for growth within China’s memory sector in the years ahead.