TLDR
- SK Hynix surpassed Samsung Electronics today to become South Korea’s most valuable listed company, with a market cap of $1.35 trillion
- The stock is up more than 340% this year, driven by surging demand for its high-bandwidth memory (HBM) chips used in AI systems
- SK Hynix holds 61% of the global HBM market, far ahead of Samsung (17%) and Micron (21%)
- Samsung held the top spot since 2000, and argues its market cap should include preferred stock, putting it at roughly 2,252 trillion won
- SK Hynix is reportedly planning a US listing on the Nasdaq to broaden its investor base
SK Hynix surged 5.7% on Monday, pushing its market capitalisation to 2,082.5 trillion won ($1.35 trillion) and edging past Samsung Electronics — which gained just 0.4% — for the first time.
Samsung has held the top position since 2000. The gap between the two is razor thin, and Samsung argues that including its preferred stock would put its market cap at around 2,252 trillion won.
The milestone caps a remarkable run for SK Hynix, whose stock has rallied more than 340% this year.
The fuel behind that rally is HBM — high-bandwidth memory chips that stack vertically to deliver faster speeds and lower power consumption. These chips are essential components inside AI processors made by Nvidia and used by customers like Alphabet’s Google.
Unlike standard DRAM chips, HBM is tightly integrated with AI hardware. That creates higher barriers to entry and gives suppliers pricing power that generic memory never had. SK Hynix holds 61% of the global HBM market. Samsung sits at 17%, Micron at 21%.
From Penny Stock to $1.35 Trillion
The turnaround story here is hard to ignore. In 2002, then-Hynix Semiconductor was nearly sold to Micron after being buried in debt. The deal fell through, leaving it under creditor control for nearly a decade. By 2003, the stock had dropped to 135 won — a penny stock.
In 2023, a memory market downturn hit hard. SK Hynix posted an annual operating loss of 7.73 trillion won that year.
The company kept investing in HBM through the downturn — a bet that paid off. By 2024, it posted a record operating profit of 23.5 trillion won as AI spending from Microsoft, Google and Meta accelerated.
SK Group Chairman Chey Tae-won, who pushed through the original acquisition of Hynix despite strong internal opposition, described his vision in a book published in January.
“What I really wanted to accomplish when we acquired Hynix was to transform it from a commodity memory producer into a mainstream semiconductor company whose products are indispensable,” he said.
He added: “In the past, it did not matter whether memory came from Hynix, Samsung or Micron. HBM is different. If SK Hynix’s HBM is replaced with another product, the AI system may not function properly.”
Samsung’s DRAM Lead Is Narrowing
The gap between the two companies isn’t just about market cap. Samsung’s dominance in DRAM production is also under pressure.
Bank of America estimates SK Hynix’s monthly DRAM output will reach around 589,000 wafers this year, versus roughly 691,000 for Samsung. But SK Hynix is projected to expand output by 38% between 2025 and 2028, compared to about 17.5% growth at Samsung.
By 2028, that would narrow the production gap to under 10%, down from 23% in 2025.
“Previously, the difference in manufacturing scale meant there was simply no way for rivals to close the profitability gap with Samsung,” said Kim Sunwoo, senior analyst at Meritz Securities.
SK Hynix is also reportedly planning a US listing on the Nasdaq, which would raise its profile further among global investors.
🚨 Our JUNE Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for June, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
