Key TakeawaysSK Hynix shares climbed up to 12% during trading hours following Alphabet’s announcement of $195B–$205B capex guidance for 2026Year-over-year growth of 82% in Alphabet’s Cloud division underscores rising AI memory chip requirementsThe Korea Securities Depository verified that SKHY ADR conversions reached the 2.5% threshold, limiting availability for American investorsA ₩7.09 trillion investment in SK Hynix’s Cheongju packaging site received board approval on July 22The KOSPI index climbed 4.8% to establish a new 2025 peak, with SK Hynix contributing significantly to the advanceShares of SK Hynix experienced an intraday surge of up to 12% on Thursday, driving the KOSPI index 4.8% higher to establish a new year-to-date record, following Alphabet’s impressive second-quarter results that delivered a powerful message to AI memory manufacturers.SK hynix Inc., SKHYAlphabet delivered Q2 revenue totaling $119.8 billion, surpassing analyst projections. The Cloud division recorded exceptional year-over-year expansion of 82%. Management subsequently elevated its 2026 full-year capital expenditure forecast to a range of $195 billion–$205 billion, representing an increase from the previous $180 billion–$190 billion projection.CFO Anat Ashkenazi from Alphabet attributed the upward revision to “an acceleration in the delivery of capacity to meet growing demand.” This commentary resonated particularly strongly with SK Hynix, a global leader in manufacturing high-bandwidth memory components essential for AI servers and data center operations.The American depositary receipt for SK Hynix, SKHY, traded approximately 5.89% higher in recent sessions, while the Korean-listed shares under ticker 000660 gained 4.86%.However, Alphabet’s financial performance wasn’t the sole catalyst behind the rally.ADR Availability Reaches Maximum ThresholdAccording to confirmation from the Korea Securities Depository, SK Hynix has reached the regulatory 2.5% maximum on Korean-listed shares eligible for conversion into American depositary receipts. This conversion pathway has now been essentially shut down.The massive $26.5 billion ADR offering completed on July 10 — ranking among the largest American equity offerings in history — depleted the available allocation. With SKHY share availability for United States investors now restricted, buying pressure has intensified considerably.Typically, an offering of such magnitude creates downward pressure on valuations. In this instance, investor demand remained robust, demonstrating strong conviction in the company’s artificial intelligence expansion narrative.Substantial Manufacturing Facility Expansion GreenlitSK Hynix’s board of directors authorized a ₩7.09 trillion capital allocation for its Cheongju advanced packaging operations on July 22. This decision underscores the company’s commitment to capacity expansion in advance of its Q2 financial results presentation, set for July 29.The announcement’s timing provides additional context to Thursday’s price action. Market participants are establishing positions before the earnings release, and the facility approval offers tangible evidence of management’s capital allocation priorities.SK Hynix’s chief executive has previously indicated that memory chip shortages will intensify through 2027, with demand exceeding manufacturing capacity well past 2030.Meanwhile, the broader American equity markets demonstrated weakness. The S&P 500 declined 0.4%, the Dow Jones decreased 0.4%, and the Nasdaq dropped 0.5% during SK Hynix’s advance. This divergence underscores that the movement represents a company-specific and industry-specific development.Alphabet’s accelerated infrastructure spending, the restricted ADR supply situation, the Cheongju expansion authorization, and imminent quarterly results have converged simultaneously.SK Hynix will announce Q2 earnings on July 29.The post SK Hynix (SKHY) Soars 12% Following Alphabet’s Massive AI Infrastructure Investment Boost appeared first on Blockonomi.