- Solidigm, the US-based storage subsidiary of SK Hynix, is reportedly preparing for a potential IPO that could raise $10 billion and value the business at $100 billion, as demand for AI data-center storage increases.
Solidigm, the enterprise storage business owned by SK Hynix Inc. (NASDAQ: SKHY), has reportedly selected investment banks for a possible US initial public offering in 2027, according to Bloomberg.
The reported offering could raise approximately $10 billion and value Solidigm at $100 billion. Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) were named as lead underwriters, while JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C) and UBS Group AG were also reportedly involved.
The proposed valuation would make Solidigm a major potential entrant in the semiconductor IPO market. However, the offering remains unconfirmed. SK Hynix said on October 1 that no decisions had been made regarding Solidigm’s capital plans, according to the company’s official clarification.
Why Solidigm Could Attract a $100 Billion Valuation
Solidigm was established after SK Hynix acquired Intel Corp.’s (NASDAQ: INTC) NAND memory and solid-state drive business in a transaction valued at approximately $9 billion. The acquisition began in 2021 and gave SK Hynix an established business in flash memory and enterprise storage.
The company now focuses on enterprise solid-state drives (SSDs), which store data in servers and data centers. These products are becoming increasingly important as AI developers expand computing infrastructure and need more capacity to store and retrieve large volumes of data.
Solidigm’s opportunity extends beyond conventional storage demand. AI workloads require substantial data movement and access, making high-capacity storage an important part of data-center infrastructure alongside processors, networking equipment and memory chips.
The wider investment cycle has drawn attention to companies supplying the physical infrastructure behind AI. Goldman Sachs strategists expect major US hyperscalers to increase infrastructure spending to about $1.2 trillion in 2027, according to Wealthier Today’s analysis of AI infrastructure spending.
Solidigm could benefit if that spending translates into sustained demand for enterprise storage. Its position in the market also places it alongside other semiconductor companies benefiting from AI-related investment, including Micron Technology’s expanding AI memory business.
Still, a $100 billion valuation would need to be assessed against Solidigm’s revenue, profitability, growth outlook and capital requirements. The company’s ownership structure and relationship with its parent would also be relevant to prospective investors evaluating a potential listing.
What Investors Need to Know Before a Solidigm IPO
The reported $100 billion valuation is not the only figure that has circulated. A September 25 Reuters report said an earlier IPO proposal could value Solidigm at as much as $150 billion and potentially raise $15 billion. Those figures reflect separate reports and should not be treated as confirmed offering terms.
The latest reported $10 billion fundraising target and $100 billion valuation suggest a potentially substantial public-market transaction, but the final size, pricing and timetable could change before any listing.
SK Hynix has publicly maintained that it is reviewing options to strengthen Solidigm’s competitiveness without confirming a specific capital plan. In its October 1 statement, the company said any decision would be evaluated in light of its overall business and long-term shareholder value. That leaves open the possibility of alternatives to an IPO, including other financing arrangements.
Investors will also need to distinguish between the broader AI memory market and Solidigm’s particular business. Solidigm specializes in NAND flash storage and enterprise SSDs, while SK Hynix is also a major supplier of DRAM and high-bandwidth memory used in AI accelerators. These products serve different functions and have different market dynamics.
The potential listing would give investors a more direct way to assess Solidigm’s enterprise-storage operations if the company discloses detailed financial results as part of an IPO filing. Until then, the reported valuation remains an estimate rather than a market-tested price.
For now, the central question is whether Solidigm can demonstrate enough growth and profitability to support a valuation of $100 billion. Rising AI infrastructure spending provides a favorable demand backdrop, but the final investment case will depend on the company’s financial performance, competitive position and the terms of any eventual offering.