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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live

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Speaker 1: from the heart of Silicon Valley with Ed Lovelow in

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Speaker 1: Van Francisco.

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Speaker 2: Welcome to a special edition of Bloomberg Tech. I'm David

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Speaker 2: Gerroy in for Ed Ludlow, who I should say is.

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Speaker 3: Not far away.

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Speaker 2: He is down at the Nasdaq because all eyes are

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Speaker 2: on sk Heinex is US listing today. This the biggest

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Speaker 2: ever US listing by a foreign company, and we are

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Speaker 2: gearing up on this Friday. We're just going to take

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Speaker 2: a look at shares of the Nasdaq one hundred down

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Speaker 2: this morning, a semiconductor index down as well. Stocks really

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Speaker 2: wavering here ahead of the debut of this listing on

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Speaker 2: the Nasdaq. Want to look at some chip stocks as well,

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Speaker 2: some rivals of sk Heinex if we can, of course,

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Speaker 2: a lot of interest in sort of where there are,

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Speaker 2: how they're performing on this Friday. Micron down one point

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Speaker 2: three percent, Intel down two point nine percent, Nvidia up

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Speaker 2: slightly again on this Friday. We want to get some

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Speaker 2: context here, some perspective from Bailey Lipshaltz. He's a Bloomberg

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Speaker 2: Tech equity reporter along with Van Deep Singh who's a

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Speaker 2: senior analyst at Bloomberg Intelligence and Bailey.

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Speaker 3: Let me start with you.

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Speaker 2: The offering price here one hundred and forty nine dollars.

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Speaker 2: The indications are this is going to open it one

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Speaker 2: hundred and seventy five dollars.

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Speaker 3: What does that tell you? And just walk us through

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Speaker 3: what we.

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Speaker 2: Can expect here in the minutes and hours ahead, David.

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Speaker 4: It shows us that the reporting we had last night

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Speaker 4: that there were two hundred billion dollars of demand is

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Speaker 4: pretty darn online. The main thing to keep in mind

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Speaker 4: is indications are only that when we saw SpaceX go public,

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Speaker 4: the indications where it opened up thirty percent and ultimately

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Speaker 4: opened up ten percent or eleven percent, So these numbers

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Speaker 4: can move around quite quickly. The main thing to keep

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Speaker 4: in mind, this is a record setting listing for a

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Speaker 4: foreign company here in the US.

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Speaker 5: This is a big deal.

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Speaker 4: Again, it was more than seven times oversubscribed. It drew

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Speaker 4: in interest from fundamental investors as well as our typical

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Speaker 4: IPO buyers. The one thing to keep in mind throughout

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Speaker 4: today and really going into next week, we are looking

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Speaker 4: at a company that is a new listing here in

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Speaker 4: the US, so limited supply available for investors. As you

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Speaker 4: can see, one hundred and seventeen point nine million eighty

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Speaker 4: rs not really a lot of shares available relative to

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Speaker 4: the float, so you can be bracing for some volatility

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Speaker 4: that is outsized against the tape that has seen semiconductors

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Speaker 4: really moving pretty sharply in either direction for the last

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Speaker 4: few months.

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Speaker 2: Noting that volatility even as we wait for the open

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Speaker 2: here and man deep thing, let me turn to you

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Speaker 2: and just ask you about the motivations for the South

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Speaker 2: Korean company to get into the US capital markets.

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Speaker 3: Simply more access to cash.

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Speaker 2: Does it say something about their designs, their eagerness to

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Speaker 2: get into.

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Speaker 3: The US market more fully?

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Speaker 2: How do you read what they're doing here today at Nazdagit.

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Speaker 6: I almost feel like these companies have become more household names.

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Speaker 6: You know, with this AI cycle. Nobody knew about ske Heinix,

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Speaker 6: you know, probably two three years back, and suddenly everyone

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Speaker 6: is talking about memory shortages and how these companies have

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Speaker 6: fundamentals that can really last a while in terms of

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Speaker 6: the durability of this cycle versus the prior cycles, and

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Speaker 6: so from that perspective, you know, having the ADRs listed

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Speaker 6: here will create more awareness among especially long term investors

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Speaker 6: who would want a piece of this. And I think

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Speaker 6: the timing seems to be perfect for the listing here.

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Speaker 2: Maybe not a household name, but a big part of

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Speaker 2: the pantheon of memory providers.

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Speaker 3: He're situated for us if you would.

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Speaker 2: So you've got sk Heinix, You've got Samsung, you've got

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Speaker 2: Micron as well.

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Speaker 3: Where is it in that universe?

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Speaker 6: Well, so I look at eske Heinix as one of

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Speaker 6: the primary providers to an Nvidia. So even though it's

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Speaker 6: an oligopoly with three players, but when you look at

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Speaker 6: you know which of the three Nvidia has used the

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Speaker 6: most for their you know, architecture so far, it's been

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Speaker 6: eske Heinix, and that's why in their IPO document they

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Speaker 6: say they have a fifty seven percent share in HPM

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Speaker 6: and HPM is where you know you can make a

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Speaker 6: direct connection to the AI data center footprints. So from

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Speaker 6: that perspective, I do think, you know, the Nvidia aspect

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Speaker 6: is huge when it comes to this listing.

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Speaker 2: Bayler, I want to ask you about what the price

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Speaker 2: of this is relative to the stock trading on the

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Speaker 2: South Korean market, So there's no discount here if you're

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Speaker 2: to buy the ADR on the NASDAC today.

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Speaker 3: What does that tell you about this company's confidence.

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Speaker 4: It's the expectation, David, when we saw this price at

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Speaker 4: about a three percent premium, that was kind of baked

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Speaker 4: into what management had been being vocal about on the

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Speaker 4: road meeting with investors, in their bankers, when they're talking

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Speaker 4: to clients who participated in the IPO. The main thing

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Speaker 4: to keep in mind is Taiwan Semi trades at about

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Speaker 4: an eighteen percent premium relative to its taipay listing. So

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Speaker 4: if you do the math on where Skehinex closed in

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Speaker 4: Seoul and could call it apples to apples, that's about

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Speaker 4: one hundred and seventy one dollars per ADR here in

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Speaker 4: the US, so obviously opening potentially higher than that. Again,

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Speaker 4: there are a number of factors at play. There's a

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Speaker 4: lot of excitement to Mandeep's point on how Sghini fits

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Speaker 4: into this. Obviously, the main thing people also have been

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Speaker 4: keeping an eye on, and we reported non d nauseum,

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Speaker 4: is that gap from a premium perspective or evaluation perspective

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Speaker 4: relative to micron.

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Speaker 2: Yeah, so a lot of volatility here, a lot of

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Speaker 2: confidence as well. Just looking at that stock, how it's

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Speaker 2: traded in South coreate a lot of volatility in that

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Speaker 2: stock in particular here over these last few weeks. I

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Speaker 2: want to bring back Bloomberg Tech we we reported Bailey

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Speaker 2: Lipschultz now along with Bendeep saying a Bloomberg intelligence and Mandy,

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Speaker 2: let me start with you and this issue of cyclicality.

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Speaker 2: You know this sector so well, and the chairman laid out,

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Speaker 2: we associate the cycles, the booms and busts of memory

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Speaker 2: with if you have to buy a smartphone, if there's

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Speaker 2: an uptick in that, or in computing or any number.

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Speaker 3: Of electronics in the home.

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Speaker 2: He said in that conversation, the AI sector, this AI

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Speaker 2: era presents something different.

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Speaker 6: Yeah, and he kept hinting at how agent AI could

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Speaker 6: be a huge unlock in terms of memory demand. He

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Speaker 6: mentioned kV cash, the key value cash that agent's hughes

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Speaker 6: a lot more than what you know the humans would

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Speaker 6: end up using in their chatbot experiences. So in his mind,

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Speaker 6: you know this, the drivers of this cycle are durable

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Speaker 6: in terms of extending the length of this cycle. He

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Speaker 6: did say, you know, the stock market can run up,

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Speaker 6: but in terms of the fundamentals, he feels a lot

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Speaker 6: more confident, and he talked about, you know, adding a

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Speaker 6: certain gigawatt capacity both within Korea and outside. So it

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Speaker 6: sounds like this company is going to ramp up its

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Speaker 6: CAPEX in a big way. I mean, they're investing what

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Speaker 6: thirty five billion dollars, that's the reference he used. They're

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Speaker 6: making that kind of money in a quarter. So you know,

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Speaker 6: from that perspective, there is room for it capex to

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Speaker 6: go high if he's that confident about the business.

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Speaker 2: And if you and I have talked so much about

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Speaker 2: these bottlenecks and the amount of demand that's placed on

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Speaker 2: a company like Skhiinex. Fascinating to hear him talk about

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Speaker 2: how he likes the long term deals that have been

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Speaker 2: animating this company. Talk a bit about that their approach

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Speaker 2: to dealing with their customers.

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Speaker 6: Yeah, I mean, traditionally, you know, their customers will prepay

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Speaker 6: for a one year contract, but now they're talking about

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Speaker 6: three to five year contracts with the customers where the

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Speaker 6: prepayment could be up to thirty percent. And you know

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Speaker 6: Micron has even locked in the prices. They haven't done that.

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Speaker 6: They are more in that camp of you know, letting

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Speaker 6: the spot prices determine what companies have to pay. But look,

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Speaker 6: if you want to be a big customer of s Kehiinix,

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Speaker 6: it's very clear you have to have a three to

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Speaker 6: five year commitment and you have to prepay certain amounts.

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Speaker 6: So from that perspective, they seem to have a lot

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Speaker 6: of levers this time around in terms of showing some

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Speaker 6: backlog to investors, and you know, that's what drives the

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Speaker 6: capex investments.

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Speaker 5: I think they use planning to make.

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Speaker 2: Bailey turning our attention back to this ADR price to

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Speaker 2: one hundred and forty nine latest indication as it would

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Speaker 2: open around one seventy one. You heard from the chairman

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Speaker 2: talking about the prospect of there being more ADRs in

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Speaker 2: the future, maybe enlarging that numbersome his appetite for maybe

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Speaker 2: hitting the debt.

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Speaker 3: Markets as well.

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Speaker 2: Of course, he's that his first priority here is stabilizing

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Speaker 2: that stock price. But what did you learn from him

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Speaker 2: from that conversation about the way that this company is

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Speaker 2: going to approach the capital markets going forward?

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Speaker 4: Now, David, I think it's an interesting point that there

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Speaker 4: is seemingly an interest in selling ADRs, because the question

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Speaker 4: has been if you're selling shares here in the US,

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Speaker 4: is it strictly to squeeze or narrow the evaluation gap

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Speaker 4: with a micron. Is it trying to entice a new

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Speaker 4: investment group or is it another venue to potentially raise capital.

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Speaker 4: So with the notion that they could sell ADRs in

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Speaker 4: the future once there's some form of stability, that's a

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Speaker 4: big deal for US investors. That'd be a big deal

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Speaker 4: to building out some of those ambitions that man Deep

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Speaker 4: was mentioning. When you talk about a company that is

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Speaker 4: pretty much taking over from the hyperscalers in terms of

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Speaker 4: bringing in free cash flow, the question then is how

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Speaker 4: do you invest in stay ahead of competitors or at

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Speaker 4: least better compete with your biggest peers.

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Speaker 5: In that question comes back to funding.

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Speaker 4: Is it coming from the free cash flow from theseayales

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Speaker 4: or is it going to be tapping eightyrs? Is he

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Speaker 4: going to be selling US dollar denominated debt again, because

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Speaker 4: these are businesses that cost a lot of money.

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Speaker 2: Bailly, thank you very much, Man Deep, Thanks to you

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Speaker 2: as well, Bailey Lifschultz Man. They've seen joined me here

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Speaker 2: in New York as wegin do and analyze and pick

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Speaker 2: apart the conversation that Ed Ludlow had there with the

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Speaker 2: chairman of sk Group, jak Wan.

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Speaker 3: We're going to continue to do that over the course

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Speaker 3: of this hour.

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Speaker 2: Nancy Tangler, the CEO and CIO Laffler Tangler Investments, is

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Speaker 2: going to join us next the f analysis of sk

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Speaker 2: Innex's US debut that's coming.

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Speaker 3: Up on Bloomberg Tech. Welcome back to Bloomberg Tech.

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Speaker 2: David Gera in for Ed Ludlow, who is at the

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Speaker 2: Nasdaq on this Friday.

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Speaker 3: Let's get the latest on where markets stand the Bloomberger

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Speaker 3: ser Huron Hi, David.

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Speaker 7: We are still waiting on sk Heinex's ADRs to begin trading,

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Speaker 7: but as we await that, we are seeing the broader

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Speaker 7: market treading water, with the nads back down about two

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Speaker 7: tenths of one percent, while the Philadelphia Semiconductor Index is

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Speaker 7: down about nine tenths of one percent as investors continue

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Speaker 7: to flip flop on whether those chip makers can keep

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Speaker 7: their pricing power. And here's a check on some of

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Speaker 7: the biggest names in the chip trade. As we get

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Speaker 7: ready to absorb all this new supply from sk Heinex,

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Speaker 7: we are seeing Micron, Intel and Western Digital falling, and

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Speaker 7: while Nvidia is bucking the trend, rising too and a

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Speaker 7: quarter percent, but Micron is the one to watch here

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Speaker 7: since until today it was effectively the only US listed

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Speaker 7: pure playway to invest in AI memory.

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Speaker 2: David Sierra, thank you very much as here and I'm

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Speaker 2: joining us here in New York. We're going to stay

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Speaker 2: with Chips. S k Henez's Nasdaq listing comes as the

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Speaker 2: industry is facing a big memory bottleneck. Nancy Tangler, CEO

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Speaker 2: and CIO of Laffer Tangler Investments, joins us now for more.

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Speaker 2: Nancy ed Ludlow talking to me before I sat in

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Speaker 2: on the show, he said, I have to ask you

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Speaker 2: if you're a buyer of this stock.

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Speaker 3: As you look at this, as you look at this.

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Speaker 2: Opening of this ADR at the Nasdaq, is it something

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Speaker 2: that you were interested in inherently?

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Speaker 8: Well, not really, but thanks thank you for asking. It's

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Speaker 8: not because we don't like the company. We are exposed

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Speaker 8: through Micron some of the suppliers like LAMB, so we've

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Speaker 8: got a pretty full allocation.

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Speaker 9: To the space and the segment. So I think it's interesting.

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Speaker 8: I'd like to watch it unlike SpaceX where we were

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Speaker 8: in on day one, because it fits a theme in

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Speaker 8: our thematic portfolio. We're gonna sit back and just watch

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Speaker 8: this one a little bit. But I loved the interview,

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Speaker 8: A great interview.

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Speaker 3: I will pass it along to Ed.

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Speaker 2: In terms of the space, in terms of the sector,

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Speaker 2: what do you see there? I mean, I hear so

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Speaker 2: much about the bottlenecks. We heard from the chairman as well,

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Speaker 2: just about the way that they're navigating the demand that

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Speaker 2: they have for their products. Talk a bit about sort

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Speaker 2: of how you're seeing this play out here in the

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Speaker 2: next months and years.

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Speaker 8: Yeah, we're you know, so I hear all the bubble concerns.

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Speaker 8: I like to hear that because it's different than what

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Speaker 8: we saw in the nineties, where no one was concerned

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Speaker 8: about anything and they just kept buying. But I will

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Speaker 8: say this, what we're here and consistently across companies, is

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Speaker 8: that they have backblogs, that they have demand out three

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Speaker 8: to five years, that they are locking in long term contracts.

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Speaker 9: You heard the same from ska's chairman.

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Speaker 8: He basically said, you know, we're going to double memory

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Speaker 8: supply in five years, and our clients are saying, our

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Speaker 8: customers are.

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Speaker 9: Saying that's not enough.

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Speaker 8: That's important and I think goes to the question of

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Speaker 8: is this a sustainable build out? And we think this

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Speaker 8: is the fourth Industrial Revolution. We are seeing an economy

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Speaker 8: in transition, and all of these technology g's not just AI,

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Speaker 8: will change the way we live in the future.

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Speaker 2: I want to pull up the big number that we've

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Speaker 2: picked for the days. That's three hundred and fifty billion dollars,

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Speaker 2: and what that represents is kind of the the aggurate

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Speaker 2: amount of debt obligations in the last five years for Alphabet, Amazon, Meta, Microsoft,

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Speaker 2: and Oracle, of course the five biggest spenders on new

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Speaker 2: data centers in the US.

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Speaker 3: What's your real action to that number?

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Speaker 2: That has been some cause here for adjuta or for

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Speaker 2: anxiety among some investors seeing the way in which these

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Speaker 2: companies are building in this moment, in this AI era.

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Speaker 3: Is that chairman put in?

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Speaker 9: Yeah, well so, David.

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Speaker 8: I mean when I grew up in this business, capex

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Speaker 8: spending was good. It showed optimistic optimism from management. If

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Speaker 8: you look at these companies, yes, I know they've been

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Speaker 8: issuing debt, but the actual amount of debt from technology

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Speaker 8: as a percent of all the debt the common debt

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Speaker 8: indices actually went down in May, probably went up a

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Speaker 8: little bit in June, but it's sit six and a

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Speaker 8: half percent. And these companies represent thirty eight to forty

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Speaker 8: depending on how you count at percent of the SMP,

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Speaker 8: so I'm not concerned that they're over spending.

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Speaker 9: I saw the downgrade on Oracle today.

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Speaker 8: You know they have committed to staying above investment grade.

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Speaker 9: We'll see.

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Speaker 8: But these companies have the free cash flow, and you know,

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Speaker 8: even with all the spending, you've got Microsoft at thirty

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Speaker 8: two I think billion in free cash flow this year

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Speaker 8: and forty plus billion next year. It might be flipped,

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Speaker 8: but it's important, I think, to keep this in perspective.

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Speaker 8: This is not profligate spending. It's not government spending, that's

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Speaker 8: for sure.

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Speaker 2: Let me ask you last week we got about thirty

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Speaker 2: seconds left, what this moment represents for US capital markets.

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Speaker 3: The fact that this company has come to the.

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Speaker 2: US to sell these ad rs, what does that say

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Speaker 2: just about the important supremacy of the US capital markets today.

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Speaker 9: I think you're one hundred percent right, David.

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Speaker 8: This is the market you want to be exposed to

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Speaker 8: if you're especially if you're an AI company.

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Speaker 9: I think the chairman said I think he said this.

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Speaker 8: I might have been ed that the AI is understood

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Speaker 8: by US investors, and that is why it's important for

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Speaker 8: them to be here.

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Speaker 9: It also, I think.

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Speaker 8: Puts a toe hold in, which is what Hoptan did

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Speaker 8: many years ago relisting avgo here. So I think there's

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Speaker 8: politics behind it, which is a good thing for the company,

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Speaker 8: and there's a ready market of eager buyers.

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Speaker 2: Nancy, always good to talk to you, especially since we

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Speaker 2: wait this open. That's Nancy Tangler, CEO and CIO of

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Speaker 2: laf Re Tangler Investments joining us on this Friday.

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Speaker 3: Welcome back the sk Highnex.

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Speaker 2: Listening suggests that demand from memory remains strong, but our

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Speaker 2: next guests demand maybe reaching its peak. Ivondelevska is the

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Speaker 2: founder and chief investment officer of Spear Flagship ETF Targets

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Speaker 2: AI related Investments.

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Speaker 3: Wand great to see you.

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Speaker 2: Something I'd really tried to pin the Cherman down on

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Speaker 2: was the notion of how long this bottleneck is likely

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Speaker 2: to last? And I'm curious sort of how you see that.

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Speaker 2: He could have presented an optimistic light. They're building companies,

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Speaker 2: are trying to do more. You will lay that bottleneck.

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Speaker 2: Do you see it subsiding here in the months and

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Speaker 2: years ahead?

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Speaker 10: Well, David, we don't see demand subsiding. However, the capacity

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Speaker 10: constraint is that it's peak right now. So this is

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Speaker 10: why you're seeing prices spike. So even if demand continues

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Speaker 10: to grow here, which we believe it will, if you

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Speaker 10: also have capacity editions, I mean at the same time

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Speaker 10: that we'll offset that demand growth. So we think this

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Speaker 10: is the peak off the constraint that we see, and

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Speaker 10: therefore if prices start picking, you're going to see the

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Speaker 10: stocks starting to taper off. But we don't see a

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Speaker 10: big fall off with think demand will continue. So that's

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Speaker 10: really the fundamental case for a memory.

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Speaker 2: Where are we in this evolution, this growth story of AI.

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Speaker 2: So we talked about the AI era, this kind of

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Speaker 2: broad umbrella. You draw a distinction between kind of the

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Speaker 2: model stage of where things are and let's move toward

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Speaker 2: more urgentic world.

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Speaker 3: Are we there yet? When do we reach it?

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Speaker 2: And how does that color or change the way that

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Speaker 2: we look at memory.

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Speaker 10: So, David, really the model training era needed a specific

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Speaker 10: type of memory, which is called high bandwidth memory. That's

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Speaker 10: a small sub segment of the broader memory trade, and

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Speaker 10: that's really what grew during the model training era. As

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Speaker 10: we enter the agentic era, we are seeing a lot

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Speaker 10: broader demand for memory. So AI agents like act in

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Speaker 10: a very similar way to humans, So they need to

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Speaker 10: keep context, they need to keep working memory, which is

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Speaker 10: why you're seeing dram prices sky rocket. So the more

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Speaker 10: traditional parts of memory are required for a gentic AI,

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Speaker 10: and that's what's lifting basically the entire memory trade here,

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Speaker 10: not necessarily just HBM our.

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Speaker 2: Investors looking at that with enough nuance, I think there's

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Speaker 2: been a clamor and eagerness to get into the space

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Speaker 2: the infrastructure surrounding AI.

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Speaker 3: Are they thinking through.

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Speaker 2: It well enough, sort of where all of this is

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Speaker 2: added and what infrastructure is needed.

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Speaker 10: Well, David, I think that's really key for investors to

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Speaker 10: do here, to understand the entire value chain. We're basically

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Speaker 10: making this big push into investments into adding memory capacity.

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Speaker 10: So rather than investing in the chip suppliers, a better

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Speaker 10: risk reward would be to invest across the value chain

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Speaker 10: and the companies that provide a semicap equipment. So basically,

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Speaker 10: I think the idea from here is that there is

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Speaker 10: one kind of investment wave where whatever you buy will

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Speaker 10: do well, and then the next trade is to actually

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Speaker 10: understand the different parts of the value chain and care spots.

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Speaker 2: I want to ask you somebody who has ETFs and

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Speaker 2: lives in this world. There has been such enthusiasm for

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Speaker 2: getting into this sector through the South Korean market.

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Speaker 3: How does this having these.

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Speaker 2: ADRs change the way that we approach companies that are

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Speaker 2: not domicile, not based in the US, but have this

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Speaker 2: presence in this global marketplace outside of the US.

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Speaker 10: Well, David, I think it's very important for US investors

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Speaker 10: to have exposure to some of these larger, high quality

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Speaker 10: companies that are global. So I think that's a very

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Speaker 10: positive thing that an ADR is getting listed. I think

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Speaker 10: the reporting standards in the US are also significantly better

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Speaker 10: than elsewhere, so that provides an extra layer of security

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Speaker 10: for US investors. So I think that's a pretty positive

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Speaker 10: trend here that investors can get access to s k Heinex,

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Speaker 10: which is one of the highest quality names within the

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Speaker 10: three memory suppliers.

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Speaker 3: Micron and Samsung the other.

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Speaker 2: Let me ask you finally, just about the AI bubble.

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Speaker 2: A brought it up with the chairman during their conversation,

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Speaker 2: and he said, there's this kind of disconnect between the

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Speaker 2: real world and the stock market. He said, there's still

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Speaker 2: demand in the real world. How are you thinking about

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Speaker 2: the prospect of this being perhaps more efforvestment, perhaps more

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Speaker 2: of a bubble than investors would like.

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Speaker 10: Well, I think people are really misunderstanding this bubble concept.

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Speaker 10: What we are really seeing more from our end is

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Speaker 10: different investment waves. So we're really seeing there was one

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Speaker 10: cycle where we had a lot of GPU investments, a

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Speaker 10: lot of big data centers. Now we're entering another cycle

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Speaker 10: where AGENTKI needs a lot more CPUs, they need a

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Speaker 10: lot more networking to connect to each other. So we're

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Speaker 10: really seeing a lot of different investment waves. On a

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Speaker 10: day to day basis, they trade all in sync, but

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Speaker 10: if you look on a one to three year basis,

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Speaker 10: you're going to see big divergence between the megacubs versus

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Speaker 10: some of these component suppliers that provide some of the

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Speaker 10: more interesting ways to play the trade.

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Speaker 3: Javana, thank you very much.

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Speaker 2: That's vand lefscheduling us here on set in New York,

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Speaker 2: CIO at Spear as we continue to talk about the

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Speaker 2: interview that my colleague Ed Ledlow just did with the

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Speaker 2: chairman of the SK Group. That's Shade one down at

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Speaker 2: the Nasdaq as we wait the opening trade of those

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Speaker 2: ADRs which are being listed on the Nasdaq today and

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Speaker 2: again the chairman talking about the notion of there being

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Speaker 2: a lot of conversation about a bubble here when it

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Speaker 2: comes to Ai, in particular, drawing that distinction between the

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Speaker 2: real world and the stock market and saying, at least

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Speaker 2: from where he sits, Ai has fight a lot of

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Speaker 2: demand for sk Heinez and what he sees is the

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Speaker 2: most important thing to do here in the months ahead

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Speaker 2: is to lower token costs, and he does in fact

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Speaker 2: see those costs coming down.

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Speaker 11: That actually requires a better return. So once we head

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Speaker 11: a better return than well, there is a more demand.

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Speaker 11: So first thing is that while we have to keep

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Speaker 11: the stock price stable and well hopefully in our long run,

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Speaker 11: then well we can add that upside potentials.

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Speaker 2: First things first, keep the stock price stable. Welcome back

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Speaker 2: to Bloomberg Tech. I'm David Gurray and for Ed Ludlow.

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00:20:57,119 --> 00:20:59,240
Speaker 2: He is at the Nasdaq this morning. I was SK

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00:20:59,320 --> 00:21:02,000
Speaker 2: Group chairman Trade Tewan in our interview less than an

443
00:21:02,040 --> 00:21:04,480
Speaker 2: hour ago. This as s k Heinez's US listing is

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00:21:04,520 --> 00:21:07,840
Speaker 2: happening today, the biggest ever US listing.

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00:21:07,800 --> 00:21:08,639
Speaker 3: By a foreign company.

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00:21:08,640 --> 00:21:10,359
Speaker 2: I want to get the latest on Marcus the Bloomberg's

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00:21:10,359 --> 00:21:12,480
Speaker 2: you hear Anon ra Hi David Well.

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00:21:12,480 --> 00:21:14,359
Speaker 7: As we look at the broader market, we can now

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00:21:14,400 --> 00:21:17,480
Speaker 7: see that the Nasdaq has flipped. It is now positive,

450
00:21:17,600 --> 00:21:20,600
Speaker 7: up about one tenths of one percent, while the Philadelphia

451
00:21:20,600 --> 00:21:24,720
Speaker 7: Semiconductor Index has trimmed its losses, now down just one

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00:21:24,800 --> 00:21:27,520
Speaker 7: tenth of one percent. That said, this remains one of

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00:21:27,560 --> 00:21:31,440
Speaker 7: the most volatile corners of the market. Jonathan Krinsky over

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00:21:31,440 --> 00:21:34,960
Speaker 7: at BTIG had this amazing stats that the socks has

455
00:21:35,080 --> 00:21:39,439
Speaker 7: swung up three percent or down three percent fifteen times

456
00:21:39,480 --> 00:21:42,359
Speaker 7: over the last trading sessions. We haven't seen that since

457
00:21:42,359 --> 00:21:44,520
Speaker 7: the year two thousand and Now, let's take a look

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00:21:44,560 --> 00:21:47,040
Speaker 7: at some of the biggest names in the chip trade

459
00:21:47,080 --> 00:21:50,640
Speaker 7: and how they are performing. Micron in Talent Video will

460
00:21:50,680 --> 00:21:53,720
Speaker 7: flip the board, but they were lower earlier.

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00:21:53,880 --> 00:21:55,000
Speaker 3: They are still.

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00:21:54,760 --> 00:21:58,720
Speaker 7: Following Micron down about one percent, in Vidia and Western

463
00:21:58,760 --> 00:22:02,200
Speaker 7: Digital bucking the treash Video up two point eight percent

464
00:22:02,280 --> 00:22:04,960
Speaker 7: as we begin as we wait to absorb all this

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00:22:05,080 --> 00:22:07,280
Speaker 7: new supply from sk Heinex So wenning I.

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Speaker 2: Hira, thank you very much, appreciate that update on the

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00:22:09,119 --> 00:22:10,639
Speaker 2: markets and those chip stocks, and we're going to go

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00:22:10,680 --> 00:22:12,760
Speaker 2: back to the nasdak w re bloombergs Ed Ludlow is

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00:22:12,800 --> 00:22:15,680
Speaker 2: standing by Ed Bravero interview there that you just did

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00:22:16,520 --> 00:22:18,360
Speaker 2: your sense of where things stand here and your main

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00:22:18,400 --> 00:22:20,600
Speaker 2: takeaway from that interview that just took place, Well.

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00:22:20,480 --> 00:22:22,160
Speaker 12: I think we're very close to the start of trade

473
00:22:22,200 --> 00:22:24,760
Speaker 12: and the latest indicating opening for the ADRs one hundred

474
00:22:24,800 --> 00:22:27,280
Speaker 12: and seventy dollars. They priced it one hundred and forty nine,

475
00:22:27,280 --> 00:22:30,360
Speaker 12: so it's about a fourteen percent premium. There was demand

476
00:22:30,359 --> 00:22:32,399
Speaker 12: there right What was really interesting in an interview and

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00:22:32,400 --> 00:22:35,560
Speaker 12: you guys played that that SoundBite. There's already questions in

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00:22:35,600 --> 00:22:39,679
Speaker 12: the market about how SK uses the ADRs on a

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00:22:39,680 --> 00:22:42,520
Speaker 12: sort of more regular and ongoing basis to raise capitals.

480
00:22:42,520 --> 00:22:45,159
Speaker 12: So like the record, as you put it, they raised

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00:22:45,440 --> 00:22:48,320
Speaker 12: twenty six point five billion dollars. It is a record

482
00:22:48,440 --> 00:22:51,720
Speaker 12: for a first time US share sale by a foreign company.

483
00:22:52,040 --> 00:22:54,919
Speaker 12: But if you look at where sk Heinex is committed

484
00:22:55,400 --> 00:22:58,639
Speaker 12: in terms of the capital commitments to expand capacity, the

485
00:22:58,720 --> 00:23:01,919
Speaker 12: various projects it has an SK group more broadly across

486
00:23:01,920 --> 00:23:04,960
Speaker 12: the AI stack, twenty six point five billion dollars doesn't

487
00:23:04,960 --> 00:23:08,320
Speaker 12: seem like that big a number. We're just looking right

488
00:23:08,320 --> 00:23:10,280
Speaker 12: now for the start of trade to happen any minute.

489
00:23:10,280 --> 00:23:13,040
Speaker 12: As I said, the indication one hundred and seventy dollars

490
00:23:13,080 --> 00:23:15,880
Speaker 12: per ADR, the pricing at one hundred and forty nine.

491
00:23:16,160 --> 00:23:19,439
Speaker 12: I think what Chairman Cha said very clearly right was

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00:23:19,480 --> 00:23:22,720
Speaker 12: that they want to see price stability, They want to

493
00:23:22,760 --> 00:23:25,280
Speaker 12: take a longer term view before they decide the when

494
00:23:25,320 --> 00:23:27,760
Speaker 12: and how much of tapping ADRs. We also got into

495
00:23:27,800 --> 00:23:31,520
Speaker 12: the idea of more broadly in capital markets of bond issuance,

496
00:23:31,800 --> 00:23:33,920
Speaker 12: which is like well at the heart of the history

497
00:23:34,480 --> 00:23:36,959
Speaker 12: of the memory game back in the twenty twelve at

498
00:23:36,960 --> 00:23:40,120
Speaker 12: the time the sk acquired Heinix. It's a different world now,

499
00:23:40,680 --> 00:23:43,639
Speaker 12: less cyclical, it's still cyclical. There's a lot to unpack.

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00:23:43,680 --> 00:23:44,440
Speaker 5: We'll get to that later.

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00:23:44,560 --> 00:23:46,119
Speaker 2: All right, Ed, thank you very much. Ed Lo low

502
00:23:46,119 --> 00:23:47,879
Speaker 2: down at the Nastaki has another interview coming up here.

503
00:23:47,960 --> 00:23:49,200
Speaker 2: Do stay with us, and I want to get back

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00:23:49,200 --> 00:23:51,680
Speaker 2: now to Bailey Lipschwaltz Bloomberg Tech Equity Reporter and pick

505
00:23:51,760 --> 00:23:52,360
Speaker 2: up on.

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Speaker 3: What Ed was just saying a moment ago.

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00:23:53,800 --> 00:23:56,560
Speaker 2: That is the chairman's emphasis on getting price to ability

508
00:23:56,640 --> 00:23:59,760
Speaker 2: stability of these ADRs, and maybe you can give us

509
00:23:59,760 --> 00:24:01,840
Speaker 2: some in site into the challenges of that going forward.

510
00:24:01,840 --> 00:24:03,400
Speaker 2: And of course the point of reference for so many

511
00:24:03,440 --> 00:24:06,040
Speaker 2: of our viewers. Is the SPACEXIPO of just a few

512
00:24:06,080 --> 00:24:09,400
Speaker 2: weeks back, and we saw Newtonian physics and stark relief there.

513
00:24:09,400 --> 00:24:10,560
Speaker 3: What goes up must come down.

514
00:24:10,800 --> 00:24:14,040
Speaker 2: I suppose what lessons can we take away from yes,

515
00:24:14,119 --> 00:24:15,720
Speaker 2: that listing and how much of a challenge is it

516
00:24:15,760 --> 00:24:18,160
Speaker 2: for this company, for a company to manage a listing

517
00:24:18,240 --> 00:24:18,720
Speaker 2: like this one?

518
00:24:19,560 --> 00:24:22,359
Speaker 4: Well, David, the difference is SpaceX was selling shares for

519
00:24:22,359 --> 00:24:24,320
Speaker 4: the first time. There was no reference price, There was

520
00:24:24,359 --> 00:24:27,000
Speaker 4: nothing really other than bedding on Elon and kind of

521
00:24:27,080 --> 00:24:30,760
Speaker 4: putting that idea together. Eske Hynix does still trade in

522
00:24:30,800 --> 00:24:32,960
Speaker 4: South Korea, so there at least is some floor in

523
00:24:33,040 --> 00:24:34,480
Speaker 4: some real sense of valuation.

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00:24:34,600 --> 00:24:36,280
Speaker 5: And this is a company that's been public for quite

525
00:24:36,320 --> 00:24:36,720
Speaker 5: some time.

526
00:24:36,920 --> 00:24:39,640
Speaker 4: As Ed had mentioned, the big question to your point, though,

527
00:24:39,960 --> 00:24:42,439
Speaker 4: we saw SpaceX open and trade much higher in the

528
00:24:42,440 --> 00:24:45,640
Speaker 4: first two days and still trading around where it initially

529
00:24:45,640 --> 00:24:48,640
Speaker 4: opened at. That's not great volatility, but not a terrible outcome.

530
00:24:48,800 --> 00:24:50,600
Speaker 4: You look at Sarah Brass, a chip maker that went

531
00:24:50,640 --> 00:24:54,800
Speaker 4: public a number of weeks ago, similar tremendous opening first day,

532
00:24:55,200 --> 00:24:58,360
Speaker 4: breaks issue price a number of weeks later after earnings.

533
00:24:58,359 --> 00:25:01,080
Speaker 4: There's a lot of volatility in chip making space. So

534
00:25:01,119 --> 00:25:03,280
Speaker 4: if you're Skhnix and you're f you're an investor who

535
00:25:03,280 --> 00:25:06,240
Speaker 4: took a position today, the big expectation is you wanted

536
00:25:06,320 --> 00:25:09,600
Speaker 4: to maintain a premium relative to the South Korean shares.

537
00:25:09,640 --> 00:25:12,480
Speaker 4: Again similar to Taiwan Semmy. You don't really want to

538
00:25:12,480 --> 00:25:15,560
Speaker 4: see this scut wrenching volatility to the up and outside.

539
00:25:16,000 --> 00:25:17,679
Speaker 2: We are waiting, of course, the start of trade for

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00:25:17,800 --> 00:25:19,640
Speaker 2: Skhiynex's ADR on the Nasdaq.

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00:25:19,680 --> 00:25:21,240
Speaker 3: You can see there on the left of your screen.

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00:25:21,560 --> 00:25:23,520
Speaker 2: A group gathered there of executives and others at the

543
00:25:23,560 --> 00:25:25,920
Speaker 2: Nasdaq here in New York City awaiting the start of trade.

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00:25:25,920 --> 00:25:27,960
Speaker 2: It was priced at one hundred and forty nine dollars

545
00:25:28,000 --> 00:25:30,520
Speaker 2: per receipt. We have seen some vacillation in terms of

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00:25:30,520 --> 00:25:33,439
Speaker 2: what the expectation is for the open of those shares

547
00:25:33,480 --> 00:25:35,640
Speaker 2: here as the morning has gone on. The latest indication,

548
00:25:35,680 --> 00:25:37,960
Speaker 2: I believe is one hundred and seventy one dollars. But

549
00:25:38,000 --> 00:25:39,880
Speaker 2: as we're just talking about with Bailey Lipshialtz, these things

550
00:25:39,880 --> 00:25:42,840
Speaker 2: tend to fluctuate. There's a lot of volatility between when

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00:25:42,920 --> 00:25:45,000
Speaker 2: a listing is priced and what happens, indeed, when they

552
00:25:45,000 --> 00:25:46,199
Speaker 2: do start trading.

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00:25:46,440 --> 00:25:47,359
Speaker 3: Bailey walk us through here.

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00:25:47,359 --> 00:25:49,000
Speaker 2: As we see the applause, there may be an indication

555
00:25:49,040 --> 00:25:50,119
Speaker 2: of the start of trade here.

556
00:25:50,760 --> 00:25:51,720
Speaker 3: In fact, I think that it is.

557
00:25:51,720 --> 00:25:54,040
Speaker 2: We see sk Hynex opening at one hundred and seventy

558
00:25:54,080 --> 00:25:57,680
Speaker 2: dollars again, the IPO price one hundred and forty nine dollars,

559
00:25:58,400 --> 00:26:01,560
Speaker 2: cheering flags waving an indication there on your screen of

560
00:26:01,560 --> 00:26:03,560
Speaker 2: the current price one hundred and seventy two dollars and

561
00:26:03,560 --> 00:26:06,440
Speaker 2: forty nine cents moving upward again from that opening price

562
00:26:06,640 --> 00:26:08,560
Speaker 2: of one hundred and forty nine dollars. I should say

563
00:26:08,560 --> 00:26:09,959
Speaker 2: the price that was targeted there by the company one

564
00:26:10,000 --> 00:26:13,439
Speaker 2: hundred and forty nine dollars. Bailey walk us through. What

565
00:26:13,480 --> 00:26:15,879
Speaker 2: happens next here is this is a process of digestion

566
00:26:16,040 --> 00:26:18,840
Speaker 2: that takes place here over the next few hours, isn't it?

567
00:26:18,840 --> 00:26:19,159
Speaker 3: It is?

568
00:26:19,240 --> 00:26:21,800
Speaker 4: And David, back to your point on stability again, if

569
00:26:21,840 --> 00:26:24,520
Speaker 4: you use an Apple to apples comparison, that eighteen percent

570
00:26:24,560 --> 00:26:26,920
Speaker 4: premium that we see for Taiwan Semi equates to about

571
00:26:26,960 --> 00:26:29,200
Speaker 4: one hundred and seventy one dollars for s k Heinex,

572
00:26:29,359 --> 00:26:32,960
Speaker 4: so opening essentially in line with that premium. The big

573
00:26:33,080 --> 00:26:35,919
Speaker 4: question to your point is do we maintain kind of

574
00:26:35,920 --> 00:26:38,399
Speaker 4: a floor. If you're a banker or if you're a

575
00:26:38,440 --> 00:26:41,000
Speaker 4: market maker on this, you want it to stay in

576
00:26:41,040 --> 00:26:43,440
Speaker 4: that one seventy to one seventy three range, maybe a

577
00:26:43,480 --> 00:26:46,480
Speaker 4: little bit below. But the big kind of mark of death,

578
00:26:46,520 --> 00:26:48,119
Speaker 4: if you will, that we've seen with a number of

579
00:26:48,160 --> 00:26:51,800
Speaker 4: these deals is initial rush of buy orders, retail pouncing

580
00:26:52,000 --> 00:26:53,880
Speaker 4: because they make a lot of market orders. You see

581
00:26:53,880 --> 00:26:57,800
Speaker 4: a stock start to shoot higher, maybe there's a volatility halt,

582
00:26:57,840 --> 00:26:59,840
Speaker 4: and then you just see a lot of chop. That's

583
00:27:00,000 --> 00:27:02,440
Speaker 4: one thing that these underwriters and that these market makers

584
00:27:02,440 --> 00:27:04,960
Speaker 4: are going to try to avoid. Again. It's a completely

585
00:27:05,000 --> 00:27:07,159
Speaker 4: different beast though, because it is a more than one

586
00:27:07,240 --> 00:27:10,080
Speaker 4: trillion dollar market cap company. It does publicly trade in

587
00:27:10,119 --> 00:27:12,359
Speaker 4: South Korea, so it's a bit of a different beast.

588
00:27:12,600 --> 00:27:14,840
Speaker 4: But all things consider, just looking at the first few

589
00:27:14,880 --> 00:27:18,199
Speaker 4: opening trades, what I'm seeing, I think most bankers and

590
00:27:18,200 --> 00:27:20,560
Speaker 4: everyone on this deal would say as of now is

591
00:27:20,560 --> 00:27:21,240
Speaker 4: a roaring.

592
00:27:21,000 --> 00:27:23,879
Speaker 2: Success once again, the largest ever US listing by a

593
00:27:23,880 --> 00:27:26,040
Speaker 2: foreign company. Looking at s k Heinez now trading on

594
00:27:26,040 --> 00:27:27,880
Speaker 2: the Nasdak, the price one hundred and forty nine dollars

595
00:27:27,920 --> 00:27:30,560
Speaker 2: seeing trading around one hundred and seventy, so opening about

596
00:27:30,560 --> 00:27:33,320
Speaker 2: fourteen percent higher than what was expected by the company,

597
00:27:33,359 --> 00:27:36,920
Speaker 2: again a twenty six point five billion dollar ADR here

598
00:27:36,960 --> 00:27:39,119
Speaker 2: on the Nasdaq Bailey before I let you go, you

599
00:27:39,200 --> 00:27:40,919
Speaker 2: heard the comments from the chairman there just about the

600
00:27:40,960 --> 00:27:43,439
Speaker 2: prospects for further expansion, their interest in maybe growing the

601
00:27:43,440 --> 00:27:47,399
Speaker 2: size of this ADR, tapping the debt markets. Of what

602
00:27:47,440 --> 00:27:49,560
Speaker 2: acute interest is that to investors at this point, again,

603
00:27:49,560 --> 00:27:51,280
Speaker 2: as they're processing all of this, as they're trying to

604
00:27:51,280 --> 00:27:53,680
Speaker 2: put a price on this company relevant what they're seen

605
00:27:54,119 --> 00:27:56,680
Speaker 2: in Seoul, how much are they thinking about the prospects

606
00:27:56,720 --> 00:27:59,320
Speaker 2: of again another ADR or larger ADR going forward.

607
00:28:00,320 --> 00:28:01,360
Speaker 5: It's certainly top of mind.

608
00:28:01,359 --> 00:28:03,920
Speaker 4: Again, this is a different beast, so you have really

609
00:28:03,960 --> 00:28:06,280
Speaker 4: one way fung ability, so you can take those South

610
00:28:06,359 --> 00:28:09,320
Speaker 4: Korea shares and convert them into ADRs, so that can

611
00:28:09,359 --> 00:28:12,480
Speaker 4: expand the available shares for trading. That's different than what

612
00:28:12,520 --> 00:28:15,160
Speaker 4: you would see with the SpaceX, where people are circling

613
00:28:15,359 --> 00:28:18,000
Speaker 4: earnings in any kind of expectation around a lockup rush

614
00:28:18,040 --> 00:28:20,760
Speaker 4: for investors to sell stock. The big question though, to

615
00:28:20,800 --> 00:28:23,119
Speaker 4: the chairman's point, if we look further out, if we

616
00:28:23,160 --> 00:28:25,320
Speaker 4: look a year out, when it's most likely in the

617
00:28:25,400 --> 00:28:29,359
Speaker 4: Nasdaq one hundred. Does that create more systematic demand that

618
00:28:29,440 --> 00:28:33,000
Speaker 4: allows them to tap investors, raise capital, kind of bolster

619
00:28:33,080 --> 00:28:36,600
Speaker 4: their balance sheet, but also further expand the float because

620
00:28:36,680 --> 00:28:39,120
Speaker 4: right now, again we are looking at a pretty tight

621
00:28:39,200 --> 00:28:41,920
Speaker 4: float just because it is an IPO. So about two

622
00:28:41,960 --> 00:28:44,040
Speaker 4: and a half percent, call it, of the total shares

623
00:28:44,080 --> 00:28:45,040
Speaker 4: available for trading.

624
00:28:45,280 --> 00:28:46,600
Speaker 5: That can lead to volatility.

625
00:28:46,640 --> 00:28:48,760
Speaker 4: You want to get that to a bigger, bigger piece

626
00:28:48,760 --> 00:28:49,360
Speaker 4: of the pie.

627
00:28:49,720 --> 00:28:51,240
Speaker 3: The last question I said that was last one. This

628
00:28:51,280 --> 00:28:51,760
Speaker 3: one truly.

629
00:28:51,800 --> 00:28:54,280
Speaker 2: If I'm sitting in Boise at Micron's headquarters, if I'm

630
00:28:54,280 --> 00:28:57,120
Speaker 2: in Soeul at Samsung's head quarters, how are I processing

631
00:28:57,280 --> 00:28:59,240
Speaker 2: what's happening here? What does this mean for the broader

632
00:29:00,080 --> 00:29:03,280
Speaker 2: remaking ecosystem, the broader global memory making ecosystem.

633
00:29:03,760 --> 00:29:06,080
Speaker 4: I think for Micron, it's came on. You've been trading

634
00:29:06,120 --> 00:29:08,040
Speaker 4: at a premium to s k Heinez. This is their

635
00:29:08,080 --> 00:29:11,280
Speaker 4: ability to narrow that premium. If you're sitting in Samsung's offices,

636
00:29:11,760 --> 00:29:14,720
Speaker 4: I imagine you're thinking about what this could look like

637
00:29:14,840 --> 00:29:17,640
Speaker 4: for you. We know Kiyoksia, the Japanese company, is planning

638
00:29:17,640 --> 00:29:20,040
Speaker 4: on listing in EIGHTRS sometime in the first half of

639
00:29:20,120 --> 00:29:22,880
Speaker 4: next year. Is this the start of a trend, especially

640
00:29:22,960 --> 00:29:25,280
Speaker 4: if we aren't in an AI bubble, and this demand

641
00:29:25,360 --> 00:29:29,400
Speaker 4: seemingly can be no longer cyclical but more fundamental. I

642
00:29:29,400 --> 00:29:32,760
Speaker 4: think that's the question that those different teams are asking themselves.

643
00:29:32,280 --> 00:29:34,600
Speaker 2: No doubt, you heard what I did, ed asking the

644
00:29:34,680 --> 00:29:36,960
Speaker 2: chairman of SK Group if he thought they could catch

645
00:29:37,040 --> 00:29:39,760
Speaker 2: up to Samsung, and he demuring there a little bit,

646
00:29:39,840 --> 00:29:41,440
Speaker 2: saying that's not the priority right now.

647
00:29:41,840 --> 00:29:43,560
Speaker 3: How much of that was bluster? Do you think?

648
00:29:43,600 --> 00:29:45,320
Speaker 2: How much do you think that that kind of binary

649
00:29:45,360 --> 00:29:48,520
Speaker 2: competition between these two South Korean giants is really front

650
00:29:48,520 --> 00:29:48,840
Speaker 2: of mine?

651
00:29:48,840 --> 00:29:49,040
Speaker 8: Here?

652
00:29:49,320 --> 00:29:51,600
Speaker 3: Yes, to the chairman of SK Group, with the company.

653
00:29:51,360 --> 00:29:53,560
Speaker 5: As a whole, everyone wants to win.

654
00:29:53,680 --> 00:29:56,080
Speaker 4: David, right, You've been covering markets long enough to know

655
00:29:56,160 --> 00:29:58,680
Speaker 4: that you want to beat your rivals. I think again,

656
00:29:59,040 --> 00:30:01,320
Speaker 4: this is a moment in I'm that they now have

657
00:30:01,440 --> 00:30:03,880
Speaker 4: the branding, they are now traded on the Nasdaq, They

658
00:30:03,920 --> 00:30:07,960
Speaker 4: now are kind of opening up their company formally. Two

659
00:30:08,040 --> 00:30:11,040
Speaker 4: US investors, two US retail investors. That's a big win.

660
00:30:11,160 --> 00:30:13,760
Speaker 4: It goes back to the debate anthropic versus open aim

661
00:30:13,760 --> 00:30:16,680
Speaker 4: and what that means. I think that's a big step forward,

662
00:30:16,960 --> 00:30:20,360
Speaker 4: and whether or not people obviously know who as KEHIINIX is.

663
00:30:20,720 --> 00:30:22,800
Speaker 4: This is a big step towards that name recognition, which

664
00:30:22,840 --> 00:30:25,160
Speaker 4: Man Deep Singh had been making a few segments ago.

665
00:30:25,320 --> 00:30:27,360
Speaker 2: Yes, indeed many will know more about it today. And

666
00:30:27,400 --> 00:30:29,160
Speaker 2: we see s k Heinek skin price at one forty

667
00:30:29,240 --> 00:30:31,200
Speaker 2: nine now trading it close to one seventy five, so

668
00:30:31,320 --> 00:30:35,320
Speaker 2: up seventeen percent from that initial price. And Bailey, I

669
00:30:35,360 --> 00:30:37,640
Speaker 2: was struck by the way that the chairman talked about

670
00:30:38,360 --> 00:30:42,000
Speaker 2: the stakeholders to whom he's responsible. And you've listened to

671
00:30:42,080 --> 00:30:45,200
Speaker 2: many chief executives chairman talk about this issue, but he

672
00:30:45,240 --> 00:30:47,360
Speaker 2: says he has so many stakeholders. There are customers, there

673
00:30:47,360 --> 00:30:50,400
Speaker 2: are shareholders, they are employees. Of course, the ADR is

674
00:30:50,440 --> 00:30:53,520
Speaker 2: another one. Perhaps you could talk a bit about striking

675
00:30:53,560 --> 00:30:55,720
Speaker 2: the balance after a moment like this one, again not

676
00:30:55,760 --> 00:30:59,160
Speaker 2: a traditional IPO by an American company, a company domiciled here,

677
00:30:59,520 --> 00:31:01,360
Speaker 2: but the way in which this opens the door to

678
00:31:01,560 --> 00:31:04,400
Speaker 2: I guess having to prioritize one perhaps more of those

679
00:31:04,400 --> 00:31:06,480
Speaker 2: stakeholders more than in the past.

680
00:31:07,680 --> 00:31:09,680
Speaker 4: Well, David, I think the thing that's interesting when we

681
00:31:09,720 --> 00:31:13,760
Speaker 4: look at this entire ecosystem, you think about to your

682
00:31:13,800 --> 00:31:16,440
Speaker 4: point and to the chairman's point, customers matter.

683
00:31:16,520 --> 00:31:18,320
Speaker 5: You want to maintain a terrific relationship.

684
00:31:18,320 --> 00:31:20,680
Speaker 4: We've had a lot of conversations over the last year,

685
00:31:20,760 --> 00:31:22,480
Speaker 4: last year and a half about.

686
00:31:22,200 --> 00:31:23,720
Speaker 5: This notion of circular financing.

687
00:31:23,720 --> 00:31:26,640
Speaker 4: Obviously that steps away from what sk Hynix is doing,

688
00:31:26,840 --> 00:31:28,520
Speaker 4: but it's all part of a balance. As much as

689
00:31:28,520 --> 00:31:32,040
Speaker 4: we've seen a rampant jump in demand for memory chips

690
00:31:32,400 --> 00:31:35,800
Speaker 4: leading to jump in profits, leading to soaring stock prices,

691
00:31:35,960 --> 00:31:38,560
Speaker 4: you still need to keep a balance with customers. This

692
00:31:38,640 --> 00:31:41,800
Speaker 4: is an ecosystem that really does win when everyone is

693
00:31:41,840 --> 00:31:44,520
Speaker 4: performing better and firing on all cylinders. The big question

694
00:31:44,600 --> 00:31:47,080
Speaker 4: comes back to is this going to play out like

695
00:31:47,160 --> 00:31:50,200
Speaker 4: so many cycles of the past, where there's a bottleneck

696
00:31:50,240 --> 00:31:53,080
Speaker 4: now that gets addressed ultimately, and then someone's left holding

697
00:31:53,120 --> 00:31:53,480
Speaker 4: the bag.

698
00:31:53,920 --> 00:31:57,480
Speaker 2: The ticker sky skhyv excuse me for the time being,

699
00:31:57,520 --> 00:31:59,240
Speaker 2: that's slated to change here in the days of s

700
00:31:59,280 --> 00:32:02,280
Speaker 2: k Heynex now trading at the Nasdaq one hundred and

701
00:32:02,280 --> 00:32:04,000
Speaker 2: seventy two dollars a share again price to one hundred

702
00:32:04,000 --> 00:32:05,840
Speaker 2: and forty nine. I'm grateful to Bailey Lipscholtz, my colleague

703
00:32:05,880 --> 00:32:07,760
Speaker 2: here a Bloomberg News, for joining us. As we saw

704
00:32:07,800 --> 00:32:10,040
Speaker 2: at the beginning of trade here in New York. Coming up,

705
00:32:10,080 --> 00:32:11,760
Speaker 2: we're going to go back to the NASDAQ. Ed Ludlow

706
00:32:11,800 --> 00:32:14,560
Speaker 2: is going to sit down with Nasdaq's president, Nelson Griggs.

707
00:32:14,760 --> 00:32:19,800
Speaker 3: That's coming up on Bloomberg Tech. Well, welcome back.

708
00:32:19,840 --> 00:32:21,240
Speaker 2: We want to go back to the NASDAK now where

709
00:32:21,240 --> 00:32:24,360
Speaker 2: Bloomberg's Ed Ludlow is with the president of that exchange,

710
00:32:24,480 --> 00:32:25,200
Speaker 2: Nelson Griggs.

711
00:32:25,200 --> 00:32:25,800
Speaker 3: Ad over to you.

712
00:32:26,240 --> 00:32:29,400
Speaker 12: Yeah, Nelson Griggs is NASDAK president. And that went about

713
00:32:29,440 --> 00:32:31,120
Speaker 12: as well as it possibly could have done.

714
00:32:31,080 --> 00:32:33,240
Speaker 5: Right, Yes, yeh.

715
00:32:34,080 --> 00:32:37,960
Speaker 12: Talk about the experience of it, you know, it's a record, yeah,

716
00:32:37,960 --> 00:32:40,480
Speaker 12: in terms of your first time US share sale for

717
00:32:40,480 --> 00:32:43,360
Speaker 12: a foreign NC Well keep saying that. But the mechanics

718
00:32:43,360 --> 00:32:46,040
Speaker 12: of it a feat It's difficult to pull off.

719
00:32:46,080 --> 00:32:47,920
Speaker 13: No, Well, I think a lot of the mechanics will

720
00:32:47,920 --> 00:32:49,720
Speaker 13: be the underwriters, So let's give them all the credit

721
00:32:49,720 --> 00:32:52,800
Speaker 13: in the world. JP Morgan running this transaction primarily as

722
00:32:52,800 --> 00:32:55,160
Speaker 13: a stabilization agent that was stabilizing this trade, but they

723
00:32:55,160 --> 00:32:55,960
Speaker 13: were the orchestrator.

724
00:32:56,040 --> 00:32:56,560
Speaker 3: Let's call it that.

725
00:32:56,880 --> 00:32:59,720
Speaker 13: You know, our job is to buy the capacity, the

726
00:32:59,760 --> 00:33:03,080
Speaker 13: tech technology you're still behind you, the human intelligence, and

727
00:33:03,120 --> 00:33:06,600
Speaker 13: making sure that everyone knows what's happening with full transparency,

728
00:33:07,080 --> 00:33:09,840
Speaker 13: so the you know, all the book runners can communicate

729
00:33:09,880 --> 00:33:12,040
Speaker 13: with their customers, which is you know, the buy side

730
00:33:12,040 --> 00:33:15,560
Speaker 13: and the investors who are making the bet on Unescahonics.

731
00:33:15,000 --> 00:33:17,080
Speaker 12: Celebrations continuing for a while.

732
00:33:17,120 --> 00:33:18,720
Speaker 5: I think, you know, it's good.

733
00:33:18,800 --> 00:33:21,840
Speaker 12: It's interesting, like this isn't very sophisticated, but it's a Friday,

734
00:33:22,560 --> 00:33:24,560
Speaker 12: you know, does that play into it as well? What

735
00:33:24,600 --> 00:33:26,479
Speaker 12: are we seeing in the activity around that.

736
00:33:26,600 --> 00:33:29,000
Speaker 13: I think most deals will price and trade on a

737
00:33:29,080 --> 00:33:32,080
Speaker 13: Wednesday or a Thursday. Friday is not typical, especially during

738
00:33:32,080 --> 00:33:34,120
Speaker 13: the summer, but I think you get to a deal

739
00:33:34,200 --> 00:33:37,040
Speaker 13: of this size that has captivated the market. It had

740
00:33:37,160 --> 00:33:40,360
Speaker 13: tremendous institutional interest, so I think it could have you know,

741
00:33:40,480 --> 00:33:43,160
Speaker 13: any day of the week. We've been fine for Eskehannicks Nelson.

742
00:33:43,800 --> 00:33:45,920
Speaker 12: One of the things I started the conversation with with

743
00:33:46,000 --> 00:33:49,640
Speaker 12: Cheirm and chay On was the idea that an ongoing

744
00:33:49,720 --> 00:33:52,560
Speaker 12: basis ADRs are an interesting mechanism for them in the

745
00:33:52,560 --> 00:33:55,960
Speaker 12: capital markets. Essentially, what chem and chay said was, well,

746
00:33:56,160 --> 00:33:58,840
Speaker 12: we'll look at some stability and give it some time,

747
00:33:58,880 --> 00:34:02,240
Speaker 12: but yes, how would that work. The idea that you

748
00:34:02,280 --> 00:34:05,760
Speaker 12: come back to the market on whatever cadence they choose.

749
00:34:05,840 --> 00:34:08,400
Speaker 13: Sure, well, well, companies typically will come back to the market.

750
00:34:08,760 --> 00:34:10,839
Speaker 13: They'll be evaluating where where they can get the best

751
00:34:10,880 --> 00:34:13,320
Speaker 13: evaluation for those shares, whether it's in their local market

752
00:34:13,400 --> 00:34:16,640
Speaker 13: or an ADR market. But the typical technology IPO will

753
00:34:16,640 --> 00:34:18,960
Speaker 13: come back to the market several times to raise capital.

754
00:34:19,600 --> 00:34:22,040
Speaker 13: This is a very seasoned public company, so they'll go

755
00:34:22,040 --> 00:34:23,600
Speaker 13: through all those mechanics and say where is the best

756
00:34:23,600 --> 00:34:25,439
Speaker 13: place and that you need to raise capital. It could

757
00:34:25,440 --> 00:34:27,400
Speaker 13: be the debt market, it could be the equity markets,

758
00:34:27,440 --> 00:34:29,080
Speaker 13: and hopefully it's ADRs in the US.

759
00:34:29,719 --> 00:34:32,239
Speaker 12: Do we need to make anything of where they price

760
00:34:32,360 --> 00:34:36,480
Speaker 12: the ADR? You know this morning on the Bloomberg it

761
00:34:36,560 --> 00:34:38,520
Speaker 12: was about this idea. Okay, this is a three percent

762
00:34:38,600 --> 00:34:43,000
Speaker 12: premium over where the common shares and soul closed. The

763
00:34:43,040 --> 00:34:46,879
Speaker 12: ADRs represent a tenth of one so common share. You know.

764
00:34:47,360 --> 00:34:49,840
Speaker 12: The backstory is how much money do you or do

765
00:34:49,880 --> 00:34:51,000
Speaker 12: you not leave on the table.

766
00:34:51,880 --> 00:34:54,640
Speaker 13: That's always the question, right right companies, and typically if

767
00:34:54,680 --> 00:34:56,560
Speaker 13: it's an IPO, let's say it's not an ADR or

768
00:34:56,600 --> 00:35:00,720
Speaker 13: benchmark off their current public comps. This had a common okay,

769
00:35:00,760 --> 00:35:04,080
Speaker 13: so what is the equity trading in Korea? Also, you

770
00:35:04,160 --> 00:35:06,759
Speaker 13: have a US large US company and microans, So how

771
00:35:06,800 --> 00:35:09,000
Speaker 13: do you find that balance? And that's where I think

772
00:35:09,840 --> 00:35:11,880
Speaker 13: JP Morgan did a very nice job. Here're getting the

773
00:35:11,920 --> 00:35:14,280
Speaker 13: price to a point where we're seeing some nice upward

774
00:35:14,280 --> 00:35:16,840
Speaker 13: price action. It's been it's very stable at the moment,

775
00:35:17,280 --> 00:35:18,799
Speaker 13: and I think they did just a great job.

776
00:35:19,760 --> 00:35:22,759
Speaker 12: Chairman Chain made an interesting point about maybe the rationale

777
00:35:22,880 --> 00:35:25,120
Speaker 12: or so for doing this, which was not just the

778
00:35:25,440 --> 00:35:31,040
Speaker 12: capital the proceeds raised, but introducing sk to the American people.

779
00:35:31,120 --> 00:35:32,320
Speaker 5: Absolutely from it.

780
00:35:32,360 --> 00:35:34,719
Speaker 12: That was in the context of the talent perspective, right,

781
00:35:34,719 --> 00:35:37,120
Speaker 12: a pipeline of talented people that might work for the

782
00:35:37,160 --> 00:35:41,360
Speaker 12: company from the Nasdaq side, and your involvement through the process.

783
00:35:41,400 --> 00:35:42,960
Speaker 12: How much do you take that into account?

784
00:35:43,160 --> 00:35:45,759
Speaker 13: Quite quite a bit, and most companies will take that

785
00:35:45,800 --> 00:35:47,640
Speaker 13: into account. So if you look at being on a

786
00:35:47,640 --> 00:35:51,840
Speaker 13: public stage the US, the global capital markets public is

787
00:35:51,840 --> 00:35:54,920
Speaker 13: about one hundred and fifty trollion a market cap, the

788
00:35:55,000 --> 00:35:57,160
Speaker 13: US is seventy percent of that. I think being a

789
00:35:57,160 --> 00:35:59,600
Speaker 13: public company in the US does show as you want

790
00:35:59,640 --> 00:36:02,400
Speaker 13: to attract talent, they're making significant investments in the US.

791
00:36:02,760 --> 00:36:05,959
Speaker 13: Having a US currency to do that is a big deal.

792
00:36:06,160 --> 00:36:10,160
Speaker 13: And even a traditional IPO puts the brand components as

793
00:36:10,280 --> 00:36:12,440
Speaker 13: one of a major reason why I think about tapping

794
00:36:12,440 --> 00:36:13,160
Speaker 13: the public markets.

795
00:36:13,239 --> 00:36:16,480
Speaker 12: There is another big memory name and chip name in

796
00:36:16,520 --> 00:36:19,799
Speaker 12: South Korea. It's called Samsung. How much have you been

797
00:36:19,840 --> 00:36:21,800
Speaker 12: talking to them about doing something similar?

798
00:36:21,920 --> 00:36:25,880
Speaker 13: We never talk about you know, names on camera or

799
00:36:26,160 --> 00:36:29,200
Speaker 13: in public until it becomes a point where it is public.

800
00:36:29,520 --> 00:36:31,960
Speaker 13: But I think if you look at having moments where

801
00:36:32,040 --> 00:36:34,719
Speaker 13: you have a successful offering, it does open up the

802
00:36:34,760 --> 00:36:37,319
Speaker 13: eyes of others to say does this make sense for us?

803
00:36:37,320 --> 00:36:39,480
Speaker 5: So at the very least, companies who.

804
00:36:39,320 --> 00:36:43,279
Speaker 13: Have an internationalist and will say does how does this

805
00:36:43,320 --> 00:36:45,480
Speaker 13: correlate to us? Do we have an investor pool to

806
00:36:45,520 --> 00:36:47,800
Speaker 13: tap into? Do we want to think about the brand aspects?

807
00:36:47,840 --> 00:36:49,920
Speaker 13: And then understanding do they want to do another offering?

808
00:36:50,320 --> 00:36:54,279
Speaker 12: Is there more broadly a pipeline. Do you think of

809
00:36:54,360 --> 00:36:58,000
Speaker 12: technology companies outside of the United States that that are

810
00:36:58,000 --> 00:37:00,319
Speaker 12: looking at this and thinking this is you know, that

811
00:37:00,360 --> 00:37:01,120
Speaker 12: fair valuation?

812
00:37:01,480 --> 00:37:02,400
Speaker 3: Yeah?

813
00:37:02,520 --> 00:37:04,680
Speaker 13: Yeah, So I was actually just in Europe this week

814
00:37:04,719 --> 00:37:06,560
Speaker 13: and meeting with a lot of companies and if you

815
00:37:06,560 --> 00:37:09,359
Speaker 13: look at this year, of the top ten raises, four

816
00:37:09,360 --> 00:37:12,200
Speaker 13: have been international. Now three of them, you know, this

817
00:37:12,320 --> 00:37:14,800
Speaker 13: is one of them with Eskehonis. But you had vending

818
00:37:14,840 --> 00:37:18,680
Speaker 13: spoons go public paypey in very large deals at BOLT,

819
00:37:18,680 --> 00:37:21,120
Speaker 13: the US capital markets gave them the best valuation. Like,

820
00:37:21,280 --> 00:37:25,320
Speaker 13: we're having more of those conversations than ADR type listings,

821
00:37:25,320 --> 00:37:27,799
Speaker 13: but both have a lot of momentum behind them.

822
00:37:27,880 --> 00:37:30,640
Speaker 12: Is there at different speeds in those markets Asian technology

823
00:37:30,719 --> 00:37:32,680
Speaker 12: versus European technology that you're seeing.

824
00:37:32,960 --> 00:37:34,400
Speaker 13: No, well, I wouldn't say that. I think most of

825
00:37:34,440 --> 00:37:37,480
Speaker 13: the European ones are not. Are more of the startup

826
00:37:37,560 --> 00:37:40,480
Speaker 13: companies that have not listed anywhere yet, so they only

827
00:37:40,520 --> 00:37:42,680
Speaker 13: look at the US as a primary first listing, maybe

828
00:37:42,680 --> 00:37:44,400
Speaker 13: the only listing. I think we do look at a

829
00:37:44,440 --> 00:37:46,680
Speaker 13: lot of companies in Asia might have a local listing,

830
00:37:46,719 --> 00:37:47,720
Speaker 13: and they think about ADRs.

831
00:37:47,760 --> 00:37:50,040
Speaker 12: I've got one very quick, niche question for you the

832
00:37:50,040 --> 00:37:53,000
Speaker 12: team sent over, which is, how is Nastat thinking about

833
00:37:53,040 --> 00:37:57,600
Speaker 12: the prospect of more leverage single name products ETFs. It's

834
00:37:57,640 --> 00:37:59,680
Speaker 12: something that comes up a lot and has this week

835
00:38:00,320 --> 00:38:03,399
Speaker 12: leverage products under under a single name ETF for tech

836
00:38:03,400 --> 00:38:04,320
Speaker 12: companies in particular.

837
00:38:04,440 --> 00:38:05,200
Speaker 3: Yeah, we look at.

838
00:38:05,160 --> 00:38:07,160
Speaker 13: Where the market demand is for things like that. There's

839
00:38:07,239 --> 00:38:09,560
Speaker 13: market demand and it's a product that we think is

840
00:38:09,600 --> 00:38:12,040
Speaker 13: going to be appropriate for the market regulated you know,

841
00:38:12,120 --> 00:38:14,839
Speaker 13: NASCA as a participant to an innovation, we look at

842
00:38:14,880 --> 00:38:16,720
Speaker 13: how we address market needs.

843
00:38:16,719 --> 00:38:19,280
Speaker 12: Nelson Griggs and as that president'll be on an exciting

844
00:38:19,360 --> 00:38:22,040
Speaker 12: and in important day here than Asdak David back to you.

845
00:38:22,160 --> 00:38:22,799
Speaker 3: I appreciate that.

846
00:38:22,920 --> 00:38:22,960
Speaker 8: Ed.

847
00:38:23,000 --> 00:38:25,360
Speaker 2: Letl again there with President Nelson Griggs of the Nasdaq

848
00:38:25,440 --> 00:38:27,239
Speaker 2: and we have more on the technology of fueling the

849
00:38:27,280 --> 00:38:29,239
Speaker 2: chip frenzy of today. Joining us now is super money

850
00:38:29,239 --> 00:38:32,520
Speaker 2: and I are Distinguish Professor of Engineering at UCLA founding

851
00:38:32,520 --> 00:38:37,000
Speaker 2: director of the Center for Heterogeneous Integration and Performance Scaling. Yes,

852
00:38:37,440 --> 00:38:39,759
Speaker 2: put that together spells chips if you do the first

853
00:38:39,800 --> 00:38:41,719
Speaker 2: letters of each of those words. He's a former IBM

854
00:38:41,719 --> 00:38:43,520
Speaker 2: fellow professor. Great to have you with us, and I

855
00:38:43,520 --> 00:38:45,480
Speaker 2: want to go back to this interview and there was

856
00:38:45,520 --> 00:38:48,480
Speaker 2: a moment during the conversation which the chairman of sk

857
00:38:48,600 --> 00:38:51,680
Speaker 2: group talked about the prospect of there being memory as

858
00:38:51,680 --> 00:38:54,920
Speaker 2: a service. I'm curious sort of how nascent that is,

859
00:38:55,360 --> 00:38:57,640
Speaker 2: what it means exactly, and how much that represents kind

860
00:38:57,680 --> 00:38:59,680
Speaker 2: of the future, the prospects of memory going forward.

861
00:39:00,880 --> 00:39:03,759
Speaker 14: That's fantastic. That's actually a very good lead into to

862
00:39:03,840 --> 00:39:08,919
Speaker 14: the discussion. So what is why is memory so important today? Right?

863
00:39:08,960 --> 00:39:11,640
Speaker 14: I mean, it's always been very important and to a

864
00:39:11,719 --> 00:39:15,239
Speaker 14: large extent, high performance computing, whether it be classical or

865
00:39:15,280 --> 00:39:21,280
Speaker 14: high performance computing or artificial intelligence focused computing, has always

866
00:39:21,320 --> 00:39:27,080
Speaker 14: been memory limited. How you use that memory is changing, right,

867
00:39:27,640 --> 00:39:30,960
Speaker 14: And if you look at the latest product that comes

868
00:39:30,960 --> 00:39:35,560
Speaker 14: out of most of the memory companies, including you know, Skix,

869
00:39:35,600 --> 00:39:40,880
Speaker 14: including Samsung, and it is the integration of logic okay,

870
00:39:40,920 --> 00:39:47,160
Speaker 14: with memory and trying to actually produce more intelligent memory chips. Now,

871
00:39:47,200 --> 00:39:51,560
Speaker 14: how you do this actually depends very much on the

872
00:39:51,680 --> 00:39:56,799
Speaker 14: architecture of your system, and it involves integrating sort of

873
00:39:56,920 --> 00:40:00,000
Speaker 14: a very high performance logic chip along with the memory.

874
00:40:00,200 --> 00:40:04,120
Speaker 14: So the memory is no longer just a sort of

875
00:40:04,160 --> 00:40:07,600
Speaker 14: a dumb piece of a bits okay, a bunch of bits,

876
00:40:07,800 --> 00:40:11,080
Speaker 14: but something that is a little bit more intelligent, okay.

877
00:40:11,239 --> 00:40:15,920
Speaker 14: And I believe that is what people are looking to

878
00:40:16,000 --> 00:40:18,799
Speaker 14: do with memory. So go away from the sort of

879
00:40:18,880 --> 00:40:23,080
Speaker 14: commodity model of memory and say, hey, look, maybe maybe

880
00:40:23,120 --> 00:40:25,480
Speaker 14: the way to do this is to configure the memory

881
00:40:25,520 --> 00:40:30,520
Speaker 14: ourselves and allow the user to use that configuration as

882
00:40:30,840 --> 00:40:32,280
Speaker 14: they wish.

883
00:40:32,360 --> 00:40:33,759
Speaker 2: We have too short a time, but I do want

884
00:40:33,760 --> 00:40:35,520
Speaker 2: to ask you sort of to situate this company in

885
00:40:35,520 --> 00:40:39,760
Speaker 2: that pantheon of Samsung, Micron, yesskhis.

886
00:40:39,239 --> 00:40:40,880
Speaker 3: Sort when you look at sort of the work.

887
00:40:40,719 --> 00:40:42,920
Speaker 2: That it's doing and what it's pioneering, where does it

888
00:40:42,960 --> 00:40:44,680
Speaker 2: stay on relative to those other two companies.

889
00:40:45,640 --> 00:40:49,200
Speaker 14: Actually, currently I would say that Hanix is in a.

890
00:40:49,360 --> 00:40:51,200
Speaker 5: Very very dominant position.

891
00:40:51,320 --> 00:40:54,920
Speaker 14: They actually command the largest faction of the what is

892
00:40:55,000 --> 00:40:58,279
Speaker 14: called the HBM market, the high bandwidth memory market, which

893
00:40:58,320 --> 00:41:02,160
Speaker 14: is really what's fueling all this growth. And they have

894
00:41:02,280 --> 00:41:07,320
Speaker 14: actually struck some good sort of collaborations or supplier relations

895
00:41:07,400 --> 00:41:11,319
Speaker 14: with the major sort of logic company TSMC. They have

896
00:41:11,360 --> 00:41:15,920
Speaker 14: excellent technology and I think all that is coming together

897
00:41:16,160 --> 00:41:16,800
Speaker 14: very nicely.

898
00:41:17,360 --> 00:41:21,280
Speaker 3: And you know this this they're they're very well well.

899
00:41:21,200 --> 00:41:24,320
Speaker 14: Poised to actually benefit from this boom and AI.

900
00:41:24,960 --> 00:41:26,560
Speaker 2: A point that they made, the chairman made is that

901
00:41:26,560 --> 00:41:29,360
Speaker 2: they're very singularly focused on memory and maybe that stands

902
00:41:29,400 --> 00:41:30,960
Speaker 2: to benefit them going forward. I wonder if you you

903
00:41:31,000 --> 00:41:33,000
Speaker 2: agree with that that they have a very unified sense

904
00:41:33,000 --> 00:41:33,640
Speaker 2: of what they're doing.

905
00:41:34,480 --> 00:41:37,879
Speaker 14: Yes, they they are focused on memory. They're there. They

906
00:41:37,920 --> 00:41:40,719
Speaker 14: don't have a logicchology using a Samsung does have a

907
00:41:40,800 --> 00:41:45,520
Speaker 14: logic logic base as well, and they're they're sort of

908
00:41:45,560 --> 00:41:51,040
Speaker 14: focused on collaborating or using TSMC technology. That actually is

909
00:41:51,440 --> 00:41:54,960
Speaker 14: a double edged sword in my opinion, But for the

910
00:41:55,040 --> 00:41:58,440
Speaker 14: moment it's not a it's a good strategy, okay, Whether

911
00:41:58,560 --> 00:42:01,480
Speaker 14: it is the right strategy long term, I don't know.

912
00:42:01,800 --> 00:42:03,840
Speaker 2: Professor, thank you very much that super SUPERMANI and I

913
00:42:03,920 --> 00:42:06,160
Speaker 2: are joining us from Los Angeles. He's a distinguished professor

914
00:42:06,200 --> 00:42:08,080
Speaker 2: of engineering at UCLA. We'll have him back on. We'll

915
00:42:08,080 --> 00:42:12,200
Speaker 2: talk about assembly and packaging and interposers as well, all

916
00:42:12,239 --> 00:42:14,640
Speaker 2: of which are his specialties. In the meantime, let's get

917
00:42:14,640 --> 00:42:16,800
Speaker 2: back to Bloomberg's Youahira Anond, who's here to talk a

918
00:42:16,840 --> 00:42:19,120
Speaker 2: bit more about the opening of trade for sk Heinex

919
00:42:19,120 --> 00:42:19,560
Speaker 2: on the NASDA.

920
00:42:19,960 --> 00:42:22,399
Speaker 7: Hi, David, Well, it is up to It is off

921
00:42:22,440 --> 00:42:25,359
Speaker 7: to a strong start of about sixteen percent from its

922
00:42:25,360 --> 00:42:28,000
Speaker 7: offering price of one hundred and forty nine dollars, and

923
00:42:28,040 --> 00:42:32,080
Speaker 7: the strong debut validates what the order book had been

924
00:42:32,120 --> 00:42:36,560
Speaker 7: signaling that this deal was more than seven times oversubscribed

925
00:42:36,800 --> 00:42:41,000
Speaker 7: with total demand with demand of nearly two hundred billion dollars,

926
00:42:41,080 --> 00:42:44,239
Speaker 7: and SK did not even need to suiteen the deal,

927
00:42:44,320 --> 00:42:47,760
Speaker 7: pricing its ADRs at a premium to a South Korean

928
00:42:47,840 --> 00:42:51,120
Speaker 7: shares and investors are showing that they're willing to pay

929
00:42:51,200 --> 00:42:54,680
Speaker 7: up for direct US exposure. And I will also say

930
00:42:54,680 --> 00:42:57,400
Speaker 7: what this means for the broader market that this at

931
00:42:57,520 --> 00:43:01,359
Speaker 7: least for now quiet concerns of investors pulling back from

932
00:43:01,400 --> 00:43:05,480
Speaker 7: the AI trade since we have seen quite volatile sessions

933
00:43:05,800 --> 00:43:07,359
Speaker 7: for the chip sector as of late.

934
00:43:07,520 --> 00:43:09,560
Speaker 2: It's a incredible surge from that price of one forty nine.

935
00:43:09,600 --> 00:43:11,560
Speaker 2: Ye HERA, thank you very much for that update here

936
00:43:11,600 --> 00:43:13,880
Speaker 2: on this Friday afternoon. Again, as we could pick apart

937
00:43:13,920 --> 00:43:15,520
Speaker 2: the comments from the chairman of the sk Group that

938
00:43:15,560 --> 00:43:18,319
Speaker 2: took place with Ed Ludlow at the NASDAQ saying this

939
00:43:18,360 --> 00:43:19,960
Speaker 2: is a dream come true for him. Ed pointing out

940
00:43:20,000 --> 00:43:21,200
Speaker 2: early on this has been in the works for a

941
00:43:21,239 --> 00:43:24,080
Speaker 2: very long time, finally coming to fruition here in New York.

942
00:43:24,080 --> 00:43:26,799
Speaker 2: We see a training at one seventy, a receipt now

943
00:43:26,840 --> 00:43:30,440
Speaker 2: of fourteen percent from that initial price, and has mentioned

944
00:43:30,480 --> 00:43:32,920
Speaker 2: just a moment ago, certainly a relief to the NASAC

945
00:43:32,960 --> 00:43:34,720
Speaker 2: to this company as well, just to see that performance

946
00:43:34,719 --> 00:43:36,160
Speaker 2: out of the gate. But as we talked about over

947
00:43:36,200 --> 00:43:38,719
Speaker 2: the course of the last hour with Bay Lipschwaltz Man

948
00:43:38,719 --> 00:43:41,799
Speaker 2: Deep Singh, there's often volatility on the heels of this,

949
00:43:41,840 --> 00:43:43,640
Speaker 2: and we'll continue to monitor that throughout the day here

950
00:43:43,719 --> 00:43:46,080
Speaker 2: on Bloomberg Television. That does it for this edition of

951
00:43:46,080 --> 00:43:48,400
Speaker 2: Bloomberg Tech. Don't forget to check out our podcast. You

952
00:43:48,440 --> 00:43:51,200
Speaker 2: can find it on the terminal as well as online

953
00:43:51,320 --> 00:43:55,480
Speaker 2: on Apple, on Spotify, and iHeart This is Bloomberg.