Shares of SK Hynix surged as much as 11% on Wednesday, pushing the company’s market value above the $1 trillion mark for the first time. The rally underscores how aggressively investors continue to position around artificial intelligence-driven demand for advanced memory chips.
By the close of trading, SK Hynix had scaled back some of its gains but still finished 9.21% higher, extending a dramatic year-long rally that has transformed the chipmaker into one of the global market’s standout performers.
A 250% year-to-date surge powered by AI memory chips
The stock’s momentum has been building throughout the year, with shares now up roughly 250% since January. The surge is largely driven by soaring demand for high-bandwidth memory (HBM), a critical component used in AI servers and accelerators.
These chips sit at the core of AI infrastructure, enabling faster data processing for large-scale models and advanced computing workloads that underpin today’s generative AI boom.
Deepening ties to Nvidia and the AI supply chain
SK Hynix has become a major supplier to AI leader Nvidia, strengthening its position within the global AI hardware ecosystem. That relationship has helped cement its status as one of the most strategically important memory producers at a time when demand for AI compute continues to outpace supply.
The rally also reflects broader enthusiasm for the semiconductor sector, particularly firms exposed to AI data center expansion and advanced chip architectures.
Samsung follows, as South Korea’s chip giants dominate the Kospi
The momentum has not been limited to SK Hynix. Samsung Electronics also closed up 2.68%, building on its own recent milestone of crossing a $1 trillion market capitalization.
Together, the two chipmakers now account for more than 40% of South Korea’s benchmark KOSPI, highlighting how heavily the index is now tied to global AI and semiconductor cycles.
The broader Kospi index has nearly doubled since the start of the year, reflecting the outsized influence of AI-linked equities on national market performance.
Market concentration raises volatility concerns
Despite the bullish momentum, analysts have flagged risks tied to the index’s concentration. Heavy reliance on a small number of mega-cap chip stocks could increase volatility, especially if global data center investment slows or supply chains face disruptions.
The concern is that any shift in AI spending trends could ripple disproportionately through South Korea’s equity market given the sector’s dominance.
“Still very much intact” fundamentals despite valuation surge
Peter Kim, global investment strategist at KB Financial Group, argued that the rally is being supported by improving fundamentals rather than speculation alone.
“Fundamentals and valuations of the two twin towers … are still very much intact,” Kim said, referring to SK Hynix and Samsung Electronics.
He added that SK Hynix’s valuation may not be as stretched as it appears, noting that earnings forecasts have been rising faster than the share price itself—effectively making the stock “cheaper” relative to its growth outlook.